In a significant move for Nigeria’s burgeoning eCommerce and fintech industries, OmniRetail, a leading B2B eCommerce startup, has acquired Traction Apps, a fintech company renowned for building payment solutions tailored to small businesses. Although the financial details of the acquisition remain undisclosed, the implications for the Nigerian business ecosystem are profound.
Founded by Mayowa Alli and Dolapo Adejuyigbe, Traction Apps has grown rapidly over the past four years, providing payment tools for more than 100,000 merchants. The fintech startup gained traction with its Point of Sale (PoS) solutions and raised $6 million in a seed funding round in 2023. Investors such as Ventures Platform, Multiply Partners, and P1 Ventures supported Traction Apps, believing in its potential to redefine digital payments for small and medium enterprises (SMEs) in Nigeria.
Background of Traction Apps and OmniRetail
Traction Apps was conceived by former McKinsey consultants Mayowa Alli and Dolapo Adejuyigbe, who aimed to address the digital payment challenges faced by Nigeria’s small businesses. Over the years, Traction Apps built a comprehensive suite of payment tools, including mobile PoS systems, enabling SMEs to accept card payments and record transactions digitally. The company’s objective was to leverage this payment data to offer additional financial services, such as credit access and business analytics, helping small businesses grow.
OmniRetail, on the other hand, has cemented its place as a leading player in the Nigerian B2B eCommerce space. The startup provides an end-to-end solution for retailers, offering everything from inventory management to payment processing. In 2020, OmniRetail launched OmniPay, a payment solution designed to streamline transactions for retailers and suppliers. With the acquisition of Traction Apps, OmniRetail seeks to expand OmniPay’s capabilities, integrating Traction’s PoS technology to create a seamless payment solution for businesses of all sizes.
Strategic Integration: OmniPay and Traction’s PoS Solutions
The acquisition is centered around the integration of Traction’s PoS solutions into OmniPay, which will significantly enhance OmniRetail’s payment processing capabilities. OmniPay, launched by OmniRetail in 2020, has already made strides in simplifying B2B transactions. However, with the integration of Traction’s advanced PoS system, the platform is expected to offer a more comprehensive range of payment services, including card payments and financial tools for SMEs.
This integration will be rolled out in phases and is anticipated to be completed by the end of Q1 2025. By merging the payment capabilities of both platforms, OmniRetail will be able to offer a unified payment gateway that supports various transactions, including credit card payments, digital invoicing, and credit access for SMEs. This is crucial in an increasingly digital economy, where businesses demand fast, secure, and efficient payment solutions to scale operations.
Expanding Financial Services for SMEs
One of the most exciting aspects of the acquisition is the broader range of financial services that will now be available to Nigerian businesses. Traction Apps originally intended to use payment data to develop additional financial offerings such as loans and business insights for merchants. By joining forces with OmniRetail, this vision will be realized on a much larger scale.
The combined entity plans to process over ₦1.8 trillion in transactions and ₦200 billion in loans annually, providing critical financial infrastructure to Nigeria’s SME sector. These services will enable merchants to not only streamline their payment processes but also access credit and other financial tools necessary for scaling their businesses. Access to affordable credit is a well-documented challenge for SMEs in Nigeria, and the combination of OmniPay and Traction’s technology could prove transformative.
The acquisition is expected to grow the combined customer base to 180,000 merchants, offering a larger pool of small businesses access to a wide range of digital payment and financial services. This scale is expected to drive economic growth in Nigeria by empowering SMEs with the financial tools they need to thrive in a digital-first economy.
Leadership Changes and Synergy
The leadership changes resulting from the acquisition will also play a significant role in OmniRetail’s next phase of growth. Both of Traction Apps’ co-founders will join OmniRetail, contributing their expertise in fintech to help build out OmniPay’s future offerings. Mayowa Alli will take on the role of Director of Technology for Payments, overseeing the technical integration of Traction’s PoS solution into OmniPay, while Dolapo Adejuyigbe will serve as Director of Operations for Payments, focusing on operational growth.
This leadership transition is emblematic of the synergies that have developed between the two companies. What began as a partnership to integrate Traction’s PoS into OmniPay for card payments has grown into a full-scale acquisition. Deepankar Rustagi, CEO of OmniRetail, emphasized the strategic importance of this partnership, stating, “This acquisition is a testament to the synergies we’ve built with Traction. Together, we will simplify payments, credit access, and loyalty solutions for retailers and SMEs, helping them thrive in an increasingly digital market.”
With Alli and Adejuyigbe’s deep understanding of the fintech landscape, OmniRetail is well-positioned to enhance OmniPay’s offerings and build a payment ecosystem that caters to the evolving needs of Nigeria’s SMEs.
Investor Confidence and Market Impact
The acquisition of Traction Apps by OmniRetail also highlights growing investor confidence in Nigeria’s fintech and eCommerce sectors. Ventures Platform, a key investor in both startups, played an instrumental role in facilitating the deal. Dotun Olowoporoku, Managing Partner at Ventures Platform, remarked on the significance of the acquisition: “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.”
The deal also reflects broader trends in the African tech ecosystem, where startups are increasingly collaborating and merging to build stronger, more integrated solutions for the region’s growing digital economy. As Nigeria’s fintech sector continues to grow, driven by increasing mobile penetration and digital payments, this acquisition positions OmniRetail and Traction at the forefront of a new wave of innovation aimed at serving SMEs.
A Vision for the Future: Scaling Across Africa
While OmniRetail and Traction Apps are firmly rooted in the Nigerian market, the companies have set their sights on regional expansion. With the acquisition, OmniRetail now has a more comprehensive product offering that can be scaled across other African markets. The payment infrastructure and financial services developed for Nigerian SMEs can be adapted for businesses across the continent, providing a pathway for OmniRetail to grow beyond Nigeria’s borders.
Moreover, OmniRetail’s focus on the digital economy aligns with broader trends across Africa, where digital transformation is rapidly reshaping industries ranging from retail to finance. As more SMEs across the continent embrace digital tools, OmniRetail’s integrated payment solutions could become a cornerstone of Africa’s growing digital economy.
Conclusion
The acquisition of Traction Apps by OmniRetail represents a major milestone for Nigeria’s eCommerce and fintech industries. By integrating Traction’s PoS solutions into OmniPay, OmniRetail will be able to offer a more comprehensive platform for SMEs, simplifying payments, credit access, and loyalty solutions. The combined entity is expected to process over ₦1.8 trillion in transactions annually, while providing crucial financial services like loans and credit to over 180,000 merchants.
With strong leadership, strategic investor support, and a clear focus on empowering SMEs, OmniRetail is poised to play a pivotal role in shaping the future of Nigeria’s digital economy. The company’s vision of simplifying business operations through technology and financial inclusion is not only relevant to Nigeria but also holds the potential to scale across Africa, making OmniRetail a key player in the region’s growing tech ecosystem.