**Africa:** OmniRetail, a B2B commerce startup, raised $20 million in Series A funding to expand its digital retail platforms and embedded finance solutions, supporting over 140,000 retailers across Nigeria, Ghana, and Ivory Coast amid a challenging supply chain landscape.
A significant development in the digital landscape of Africa’s retail sector was marked by OmniRetail, a B2B commerce startup, which recently secured $20 million in a Series A funding round. This funding aims to bolster the company’s retailer base and expand its offerings across various product categories, including personal care, home care, and cold storage.
Founded in January 2019 by Deepankar Rustagi, OmniRetail has now raised a total of $38 million in equity and debt through this latest funding initiative. The company operates through three interconnected platforms: OmniBiz, a digital marketplace connecting retailers, manufacturers, and distributors; Mplify, a software solution for inventory management; and OmniPay, which offers a digital payment infrastructure alongside access to loans and a buy now, pay later system.
Deepankar Rustagi, the founder and CEO of OmniRetail, stated, “Retailers in Africa are often underserved, not because of a lack of demand, but because the systems around them are fragmented and inefficient. We’re building an infrastructure to connect manufacturers to retailers at scale, while also giving merchants the tools to run their businesses more efficiently,” in an interview with TechCrunch.
The Series A funding round received backing from various notable investors, including the Norwegian development finance institution Norfund, marking its first direct equity investment in an African startup. Other contributors included the Lagos-based VC firm Timon Capital, along with Ventures Platform, Aruwa Capital, Goodwell Investments (through Alitheia Capital), and Flour Mills of Nigeria.
Cathrine Conradi, an investor director at Norfund, highlighted the importance of OmniRetail’s role in the financing landscape by stating, “Embedded finance is one of the most transformative tools for small business growth in Africa.”
Currently, OmniRetail operates in three countries—Nigeria, Ghana, and Ivory Coast—connecting more than 140,000 retailers with over 65 brands, offering access to more than 900 products. The company’s order management capabilities involve collaboration with 145 manufacturers and over 5,800 distributors across 12 cities in these regions.
The Series A funding comes at a pivotal moment as many small and medium-sized retailers across Africa grapple with challenges such as broken supply chains, inconsistent inventory access, and limited financing options. Unlike its competitors, such as Wasoko— which has transitioned from an asset-light to a more asset-heavy model—OmniRetail maintains an asset-light approach. This strategy allows it to partner with traditional distributors while providing technological solutions to enhance their operations.
Archit Bargaria, OmniRetail’s head of investment, noted, “The company’s progress also lies in a deep understanding of the FMCG retail ecosystem,” further emphasising the importance of contextual knowledge in navigating the retail market.
OmniRetail’s financial strategy has proven effective; the company became EBITDA positive in 2023 and achieved net profitability in 2024, processing transactions exceeding $810 million, with a reported revenue increase of 40%.
Central to OmniRetail’s mission is financial inclusion. The OmniPay app offers diverse financial services, enabling retailers to secure funding for their businesses, including zero transfer fees.
In summary, the OmniRetail Series A funding effectively positions the company to strengthen its relationships with manufacturers and distributors, paving the way for removing barriers that hinder merchant growth. This funding round stands out amid declining investor interest in startups addressing supply chain and operational challenges, reflecting strong confidence in OmniRetail’s innovative business model and its role in enhancing Africa’s retail infrastructure.
Source: Noah Wire Services
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