When Deepankar Rustagi raised funding for OmniRetail back in 2022, optimism was high among investors regarding African startups tackling supply chain complexities in the fast-moving consumer goods (FMCG) space. At that time, these enterprises attracted almost as much capital as fintech companies, which were traditionally the investment leaders. However, the enthusiasm and investor attention declined sharply in the years following, as some of these startups grappled to establish sustainable and profitable business models.
In contrast, Rustagi’s OmniRetail has emerged from this difficult environment not merely unscathed but thriving. He envisions OmniRetail as more than just another B2B e-commerce initiative; it is a comprehensive approach to transforming informal retail across Nigeria and the broader West African region. Employing technology-driven processes combined with embedded finance solutions, OmniRetail has carved out a unique competitive position. This vision recently received further validation in the form of a substantial $20 million Series A equity round, co-led by Norway’s development finance institution, Norfund, and Lagos-based Timon Capital. Ventures Platform, Aruwa Capital, Goodwell Investments (via Alitheia Capital), and Flour Mills of Nigeria also participated.
The fresh capital injection will empower OmniRetail to further solidify its foothold in Nigeria, Ghana, and Ivory Coast while enhancing its embedded finance offerings. Notably, this Series A investment is Norfund’s first direct equity placement into an African startup. According to Rustagi, this achievement exemplifies OmniRetail’s strength in a market segment where others have faced substantial hurdles to profitable expansion. Counting both debt and equity, OmniRetail has now raised a cumulative $38 million since launching in 2019.
OmniRetail streamlines digital ordering processes for 145 manufacturers, over 5,800 distributors, and approximately 150,000 informal retail outlets spread across twelve cities within Nigeria, Ghana, and Ivory Coast. Through the company’s user-friendly digital platform, retailers place and track inventory orders, access working capital, and carry out digital transactions. Supporting this infrastructure, OmniRetail maintains an extensive logistics network comprising over 1,100 vehicles plus distributed warehousing facilities operated by 85 local logistics partners.
A substantial driver of its success has been OmniRetail’s asset-light business model, allowing the company to achieve profitability within a remarkably short span. The venture became EBITDA positive in 2023 and achieved full net profitability the following year, mirroring a similar trajectory witnessed at Cartona—a comparable Egypt-based company.
Rustagi describes the company’s unique “network-of-networks” business model as inherently efficient, scalable, and highly profitable, a pivotal factor behind the latest capital raise. “Our efficiency in leveraging the aggregated network assets proved that the model we’ve designed works well and can scale effectively,” he noted. “Now, the goal is not just rapid growth, but expanding strategically into new regions and moving deeper into selected product categories to optimize our operations.”
By achieving higher occupancy levels in warehousing, streamlining logistical efficiency, and deepening market penetration into core FMCG categories, OmniRetail aims to consistently enhance margins. Furthermore, OmniRetail’s leadership team possesses extensive expertise and decades of accumulated experience within the FMCG distribution ecosystem, equipping them with an acute understanding of industry nuances.
OmniRetail has deliberately avoided premature introductions of credit products, instead waiting until significant distribution scale and sufficient data collection had been accomplished. As a result, the company impressively processed over ₦1.3 trillion (approximately $810 million) in transactions during the previous year, with its buy-now-pay-later (BNPL) offering, Omnipay, regularly disbursing inventory credit totaling ₦19 billion ($12 million) monthly, accompanied by negligible default rates.
The company advanced its competitive position further in 2024 through the strategic acquisition of Traction Apps, a merchant solution provider in Nigeria. Traction’s expansive financial services capabilities—including point-of-sale terminals, PSSP licenses, Super Agent permits, and comprehensive retailer-level sales data—give OmniRetail additional insight and control within its distribution and financial ecosystems.
“Each transaction within the FMCG value chain encompasses the flow of goods and capital simultaneously,” Rustagi explained. “Today, we’re ideally positioned to extract maximum advantages from every transaction, whether it’s optimizing the sourcing of goods, simplifying financial transactions, or facilitating working capital financing and related value-added services.”
Despite choosing to stop publicly disclosing gross merchandise value (GMV), a common metric in the sector, OmniRetail reports an impressive 35% increase in net merchandise volume (NMV) and a robust 40% growth in revenue year-over-year—all while simultaneously expanding and remaining profitable.
With the new $20 million capital raise, OmniRetail plans to broaden its retailer base and accelerate expansion into additional product categories, including personal care, home care, and cold storage chains. Investment will also flow toward improvements in infrastructure capabilities, credit underwriting technologies, and debt partnerships, with an active local funding round planned to support expansion of the company’s loan book.
For Norfund, investing in OmniRetail signifies more than a mere venture into fintech or commerce in isolation—it represents foundational economic infrastructure establishment. Cathrine Conradi, Norfund’s Investor Director, highlighted embedded finance as one of the most potent catalysts for small business growth across the continent, viewing OmniRetail’s innovative model as crucial in delivering capital where traditional financial pathways have thus far struggled to reach.
Similarly, Timon Capital—one of OmniRetail’s earliest backers—considers the latest funding round a decisive milestone. The company, they say, has hit an inflection point across distribution, payments, and credit systems. With demonstrated profitability, Timon Capital underscores that OmniRetail is poised for another phase of formidable and sustainable growth.
