OmniRetail Acquires Traction Apps to Boost Financial Services for SMEs in FMCG Sector
OmniRetail, recognized as Africa’s fastest-growing company by the FT Rankings 2024, has announced that it has reached an agreement for the acquisition of Traction Apps, a leading payment solutions provider for small merchants in Nigeria. This acquisition marks a significant step forward in OmniRetail’s mission to strengthen financial services and trade solutions for small and medium-sized enterprises (SMEs) within the fast-moving consumer goods (FMCG) value chain across Africa.
OmniRetail, which has been addressing challenges faced by SMEs in the FMCG space since 2019, launched OmniPay in 2022—a seamless payments platform that integrates with 13 financial service providers, enabling smooth collections and supplier payments. OmniPay uses transaction data to build creditworthiness scores, empowering underserved retailers with the capital needed for growth.
Traction Apps, founded by Mayowa Alli and Dolapo Adejuyigbe in 2020, has grown to serve over 100,000 merchants by offering a one-stop platform that includes payment acceptance, lending, and retail software solutions. This acquisition will allow Omni to integrate Traction’s merchant POS services into OmniPay’s existing ecosystem, creating an enhanced financial platform for retailers.
Deepankar, CEO of OmniRetail, commented, “This acquisition is a testament to the synergies we’ve built with Traction. What started as a partnership to integrate Traction’s POS into OmniPay for card payments has grown into a full merger. Together, we will simplify payments, credit access, and loyalty solutions for retailers and SMEs, helping them thrive in an increasingly digital market.”
Traction co-founder Mayowa Alli added, “This integration will allow us to scale our solutions and accelerate our vision of simplifying payments at the retail level. OmniRetail’s ecosystem will enable us to bring our innovative solutions to a wider audience, benefiting even more small businesses across Nigeria and beyond.”
Dolapo Adejuyigbe, co-founder of Traction, echoed these sentiments: “Building Traction has been about empowering small businesses to grow and thrive. Now, as part of OmniRetail, we will become the leading growth partner for SMEs across Nigeria, offering a more comprehensive platform than ever before.”
This acquisition supports OmniRetail’s overarching mission to bridge the gap between retailers and financial services, offering a unified platform that enhances access to financial resources and improves operational efficiency.
Strategic Rationale:
· Traction’s services complement OmniPay’s existing offerings, creating a holistic solution for SMEs in the FMCG space. The combined platform will strengthen differentiation from other fintech players, improve customer satisfaction, and enhance service delivery.
· Traction has a strong presence in retail, supermarkets, restaurants, fashion stores, and electronics—three of these categories align perfectly with Omni’s customer base, making up 70% of Traction’s merchants.
· By merging the platforms, OmniRetail and Traction will scale profitability while optimizing costs, creating a more efficient service model for merchants.
Market Impact:
· The combined entity will now service 160,000 customers across wholesale and retail sectors, positioning itself as a leader in the FMCG space.
Financial and Growth Metrics:
· The new entity will process over ₦2 trillion annually and facilitate loans worth ₦200 billion per year.
Leadership and Team Synergies:
· The founding team of Traction will join OmniRetail’s leadership, with a focus on growing OmniPay, integrating solutions, and driving product development. “Their expertise in fintech infrastructure, combined with our retail knowledge, will drive innovation and growth,” said Dika Oha, Chief Innovation Officer of OmniRetail.
Customer Benefits:
· Customers will gain access to a comprehensive suite of services, including payments, faster loan approvals, and expanded financial products across emerging markets.
Investor and Stakeholder Endorsements:
· The key investors of Traction are P1Ventures, Consonance and Ventures platform.
· Venture Platform, a key investor in both OmniRetail and Traction, played an instrumental role in facilitating this collaboration. Dotun Olowoporoku, Partner at Venture Platform, said, “We believe in leveraging the strengths of our portfolio companies to create more robust solutions. This acquisition is a major step forward in building more comprehensive offerings for African SMEs.”
Next Steps and Timeline:
· The acquisition will proceed in phases starting with integrating the Omnipay and Traction teams and then focusing on platform integration. The full integration of Traction with OmniPay will be completed by the end of Q1 2025, with enhanced services rolling out to customers shortly thereafter.
Transaction Details:
· When asked about the transaction value, both teams declined to disclose specifics. However, Archit, Head of Investments at OmniRetail, commented, “The acquisition is structured as a part equity and part cash deal, allowing Traction’s investors and stakeholders to benefit from OmniRetail’s (combined entity’s) growth.”