When the Rustagi Deepankar last brought money for omniretail in 2022, the excitement was high for African beginnings that addressed the supply chain and operational challenges in the fast -moving consumer sector (FMCG). At one point, these startups received more capital than all sectors, except Fintech.
However, recently, industry enthusiasm and entrepreneurial capital interest have faded, as various business models have fought under increasing pressure.
However, for Rustagi, omniretail is not just another B2B trading platform; It is an ambitious attempt to reshape informal retail throughout Nigeria and West Africa using technology and finances embedded in a scaled, profitable way. Now, that vision has received further approval with a $ 20 million -dollar Capital Funding round. This capital will help omniretail expand its presence in Nigeria, Ghana and Ivory Coast, deepening its focus on embedded finance products.
The round was co-directed by the Norwegian Norwegian Development Institution and the Lagos-based VC firm, Timon Capital, with the following participation by Ventures Platform, Aruwa Capital, Goodwell Investments (through Alitheia Capital) and Nigeria’s Mills flour.
This marks the first investment of Norfund’s direct capital in an African start, and according to Rustagi, puts omniretail on a road to dominate a segment where others have fought to grow profitable. Omniretail has raised $ 38 million in capital and debt since its start in 2019.
Omniretail’s model digitizes order management for 145 manufacturers, more than 5,800 distributors and services over 150,000 informal retail sellers in 12 cities in Nigeria, Ghana and Ivory Coast.
Retail sellers use the app to order inventory, enter the working capital and make digital payments. In the background is a logistical network of third parties with over 1,100 vehicles and distributed storage capacity managed by 85 local logistics partners.
Omniretail’s assets light strategy has been important in hitting the benefit. In 2023, the Lagos -based B2B B2B Electronic Platform became positive EBITDA. In 2024, it returned a lucrative net. A similar story is unfolding in Egypt, where another B2B e -commerce platform, Cartona, owes its push towards the benefit of the model.
Both CEOs have observed that the African informal market is wide and composed of suppliers and distributors who do not need to move or compete against, but rather become more efficient with technology tools provided by their platforms.
“Traveling profitability was a result of our efficiency in using the assets we were accumulated on the network, and this has proven that the model we joined as a” network network “is profitable and is very scaled, Rustagi said. “That is why we move forward and increase the capital to finally place metal in the pedal and scale in more geography and in more categories. We are now expanding not only to grow but to optimize.”
The best occupation in storage, the smartest ways of logistics, and the deeper category penetration will improve all boundaries, he added.
Rustagi, in a conversation with Techcrunch, along with Omiretail’s Investment Chief, Architect Bagaria, further explained that the progress of the company also lies in a deep understanding of the FMCG retail ecosystem, with the entire governing team boasting of decades.
According to them, it provides a unique advantage of understanding how the value chain works, who are the key players, and where the gaps exist in visibility.
“For years, the goods have moved from point A to point B, but the lack of transparency has hampered financial inclusion and caused inefficiency in the process,” Bagaria said. “By building an ecosystem that fixes this whole landscape, we can solve these problems.”
Once a startup arrives critically, Bagaria adds, it becomes easier to lay out additional services, such as payments and purchases-now-pay-later (BNPL), at the top of its existing infrastructure. “Our approach has been different from others, and we believe we have found success with this model,” Bagaria added.
Unlike the other beginnings that were thrown into the delivery of credit products too early or wrong at departure, the omniretail waited until there was a significant scale distribution and data. Thanks to this strategy, Omniretail processed over 1.3 trillion ₦ ($ 810 million) in transactions last year, with OMNIPAY, its BNPL product, disbursing 19 billion months a month ($ 12 million) in inventory loans, boasting pre-zero, according to the company.
Purchase of Nigeria -based trade -based trade -based platform apps further strengthened OMNiretail’s strategy. Attraction ensures full payment skills, including POS terminals, PSPS licenses and super agents, and access to retailer level sales data.
For omniretail, the purchase allows it to gain a full financial profile of each retailer, giving it even greater control over the supply chain and the ability to provide adapted financial solutions.
“Transactiondo transaction in the FMCG value chain has two sides: the movement of goods and the movement of funds,” Rustagi said. “Today, we are able to accumulate maximum benefits from any transaction in the value chain. Our plan is to dive deep into the value chain and maximize borders. International players have done well in their markets, and we are bringing that model to Nigeria today.”
While it no longer publicly detects GMV figures, leaving the metric that has long been a major indicator of sector performance, it reports a 35% increase in net goods (NMV) and a 40% collision of income over the past year, all holding its benefit despite its expansion.
Some of our future movements are concentrated in the laser: a strong debt rise for inventory financing, strategic purchases and a ruthless profitable increase. “
With $ 20 million in fresh capital, Omniretail plans to continue increasing the retailer base and expanding into new categories of products such as personal care, home care and cold storage.
Capital will also improve its infrastructure, improve its credit signature tools and strengthen partnerships with domestic debt providers. As such, some of its future movements include a debt increase in inventory financing and strategic purchases, according to Bagaria.
For Norfund, omniretail represents more than just a fintech bet or trade; It is infrastructure.
“Embedded finances are one of the most transformative tools for growing small business in Africa,” said Investor Director Norfund Cathrine Conradi. “The omniretail model brings capital to areas where traditional systems have failed.”
Meanwhile, Timon Capital, who supported omniratail from its seed phase, sees this as a breakdown moment for the company.
“Omniretail has now hit a point of infection in distribution, payments and credit, indicating how much lucrative growth they can generate with their expansion trail,” the firm said.
