OmniRetail, a startup working to transform informal retail in Africa, has secured $20 million in a Series A equity funding round. Led by Norwegian development finance institution Norfund and Lagos-based Timon Capital, with participation from Ventures Platform, Aruwa Capital, Goodwell Investments (via Alitheia Capital), and Flour Mills of Nigeria, the investment will drive OmniRetail’s expansion across Nigeria, Ghana, and Ivory Coast.
Founded in 2019 by Deepankar Rustagi, OmniRetail focuses on addressing inefficiencies in Africa’s fast-moving consumer goods (FMCG) sector. The company digitizes order management for 145 manufacturers, 5,800 distributors, and over 150,000 informal retailers across 12 cities. Its platform lets retailers order inventory, access working capital, and make digital payments through a network supported by 1,100 vehicles and 85 logistics partners.
Achieving Profitability Through Smart Scaling
Unlike many of its peers, OmniRetail has charted a profitable path. The company became EBITDA positive in 2023 and turned net profitable in 2024. Its asset-light, “network of networks” model has allowed it to grow sustainably, optimizing logistics routes, warehouse occupancy, and category penetration to improve margins.
“The profitability journey was an outcome of our efficiency on utilizing the assets that we aggregated in the network, and this has proven that the model that we put together is profitable and highly scalable.” Rustagi explained,
With this new capital, OmniRetail plans to grow its retailer base, expand into product categories like personal care, home care, and cold storage, and improve its infrastructure and credit tools.
Embedded Finance as a Game-Changer
OmniRetail’s embedded finance services are a major part of its success. Through Omnipay, the startup disburses ₦19 billion ($12 million) monthly in inventory credit with near-zero default rates. In 2023, it processed ₦1.3 trillion ($810 million) worth of transactions.
A key milestone in its financial services strategy was the acquisition of Traction Apps in 2024 (read more here). Traction provides full-stack payment capabilities and access to sales data, giving OmniRetail deeper control over retailer finances and supply chains.
“Every transaction in the FMCG value chain has two sides: the movement of goods and the movement of funds. Today, we are in a position to aggregate maximum benefits from every transaction in the value chain.” said Rustagi.
Deep Understanding of the FMCG Market
OmniRetail’s leadership team brings decades of experience in FMCG retail. According to Rustagi and Head of Investment, Archit Bagaria, this understanding gives them an advantage in addressing gaps in transparency and operational inefficiencies.
“For years, goods have been moving from point A to point B, but the lack of transparency has hindered financial inclusion and caused inefficiencies. By building an ecosystem that streamlines this entire landscape, we can solve these problems.” said Bagaria.
Bagaria added that by reaching critical mass in distribution, OmniRetail can successfully layer services like payments and buy-now-pay-later (BNPL) onto its platform.
Backing from Norfund and Timon Capital
For Norfund, the investment in OmniRetail goes beyond commerce.
“Embedded finance is one of the most transformative tools for small business growth in Africa,” said Cathrine Conradi, Investor Director at Norfund.
Timon Capital, which has supported OmniRetail since its seed round, believes this Series A represents a breakout moment for the startup.
“OmniRetail has now hit an inflection point in distribution, payments, and credit, showing just how much profitable growth they can generate with their expanding footprint,” the firm said.
LoftyInc Capital’s Early Bet
Idris Ayodeji Bello, Afropreneur and Founding Partner at LoftyInc Capital Management, shared his thoughts on OmniRetail’s journey. In a LinkedIn post, he wrote:
“Four years ago, at LoftyInc Capital, we made a very early, contrarian bet on an extraordinary entrepreneur in Nigeria – Deepankar Rustagi. At a time when the challenges of SME growth, retail enablement, and supply chain inefficiencies were often discussed but rarely tackled head-on, Deepankar was building OmniRetail Africa… Deepankar wasn’t chasing media headlines or panel invitations; while competitors spoke on HBS Africa panels or collected awards, he and his team were deep in the markets of Oke Arin and Balogun, engaging semi-literate traders, understanding their realities, and solving their real problems…”
You can read his full statement here.
Future Moves
With fresh capital in hand, OmniRetail is preparing for a targeted debt raise for inventory finance, strategic acquisitions, and a continued push for profitable expansion. The company is also investing in new technology to improve its credit underwriting and strengthen its partnerships with domestic debt providers.
