OmniRetail, a fast-growing Nigerian B2B e-commerce startup, has taken a bold step to strengthen its foothold in the financial services sector by acquiring Traction Apps, a prominent provider of payment solutions and inventory management tailored for small businesses. This acquisition, recognized as a pivotal move in Nigeria’s burgeoning SME sector, aims to empower small and medium-sized enterprises (SMEs) with streamlined trade and financial services, particularly within the fast-moving consumer goods (FMCG) market.
The acquisition comes on the back of OmniRetail’s ambitious growth strategy, following their recent recognition by the Financial Times as Africa’s fastest-growing company. By absorbing Traction’s merchant POS services into OmniPay, OmniRetail’s in-house payment platform, the combined entity is projected to handle over ₦1.8 trillion in transactions annually, while facilitating loans worth ₦200 billion—a clear win for SMEs seeking financial accessibility and smoother business operations.
OmniRetail’s CEO, Rustagi Deepankar, framed the acquisition as a strategic evolution of their partnership with Traction Apps. What started as an integration of Traction’s POS for card payments has blossomed into a full merger. Rustagi remarked, “This acquisition underscores the synergies we’ve built over time. Together, we’re not just simplifying payments, we’re offering SMEs a more complete solution for credit access, loyalty programs, and financial growth.”
Why This Move Matters for Nigerian SMEs
For small businesses in Nigeria—many of which operate in cash-dependent environments—the integration of Traction with OmniPay marks a significant shift. OmniRetail’s expanded ecosystem will give these businesses access to digital payment solutions, alongside much-needed credit services. Given that SMEs account for over 90% of businesses in Nigeria, this merger isn’t just about growing market share—it’s about providing essential tools that could reshape the way small businesses handle payments, loans, and loyalty programs.
Mayowa Alli, co-founder of Traction Apps, echoed this sentiment, highlighting the broader implications for Nigeria’s retail sector. “OmniRetail’s network and resources allow us to scale our vision of making payments simpler for retailers. We’re excited to bring these innovations to more small businesses, helping them thrive in a digital marketplace,” he shared.
Venture Platform and the Financial Backing Behind the Deal
The acquisition was steered by Venture Platform, which has invested in both OmniRetail and Traction. While the exact financial terms were not disclosed, the transaction involves both debt and equity from Traction, giving its investors a stake in OmniRetail’s future growth. This move also ensures that both startups benefit from the long-term scalability of the merged operations, positioning them as leaders in Nigeria’s digital commerce landscape.
What’s Next: OmniRetail’s Roadmap for Integration and Growth
With Traction’s founding team set to join OmniRetail’s leadership, efforts are already underway to fully integrate Traction’s technology and services into OmniPay. The goal is to complete this process by the first quarter of 2025, with enhanced features and services set to roll out thereafter. By combining payment processing capabilities with expanded loan access, the unified entity will offer SMEs a holistic solution for managing financial transactions.
In a rapidly digitizing market like Nigeria’s, this merger couldn’t come at a better time. The combined force of OmniRetail and Traction is expected to reshape how SMEs handle not just payments, but also inventory and customer loyalty—allowing them to operate more efficiently and competitively.
A New Era for SME Financial Services in Nigeria
As Nigeria’s fintech and e-commerce ecosystems continue to evolve, the merger between OmniRetail and Traction Apps highlights the importance of collaboration in driving innovation. Together, they are set to deliver services that will not only simplify the day-to-day operations of Nigerian SMEs but also make it easier for these businesses to access the credit and digital tools they need to grow.
OmniRetail’s vision for the future is clear: to empower small businesses by providing comprehensive solutions that foster growth and efficiency in an increasingly competitive market. With the projected ability to process ₦1.8 trillion annually and offer ₦200 billion in loans, OmniRetail’s acquisition of Traction represents a crucial step forward in building a digital-first financial ecosystem for SMEs.
Leave feedback about this