By Adedapo Adesanya
Nigerian-based business-to-business (B2B) e-commerce startup, OmniRetail, has acquired Traction Apps, a payment provider and inventory management solution for small businesses in Nigeria as it seeks to strengthen its foothold and expand its offerings for small and medium-sized enterprises (SMEs) within the fast-moving consumer goods (FMCG) sector.
The acquisition of the company founded in 2020 will see OmniRetail integrate Traction into its flagship payment platform, OmniPay.
It will be targeting to process close to N2 trillion annually and help provide loans to businesses worth N200 billion yearly.
As part of the acquisition, OmniRetail will onboard both debt and equity previously from Traction, allowing Traction’s investors to benefit from the continued growth of the combined entity.
The move will come with fresh changes with Traction’s founding team including Mr Mayowa Alli and Mr Dolapo Adejuyigbe joining OmniRetail’s leadership.
The new management will focus on growing OmniPay while integrating solutions and driving product development.
The full integration of Traction with OmniPay is expected to be completed by the March 2025, with enhanced services rolling out to customers thereafter.
Speaking on the development, Mr Rustagi Deepankar, CEO of OmniRetail said the merger will help the company achieve a lot of things toward its customer base.
“This acquisition is a testament to the synergies we have built with Traction. What started as a partnership to integrate Traction’s POS into OmniPay for card payments has grown into a full merger. Together, we will simplify payments, credit access, and loyalty solutions for retailers, helping them thrive in an increasingly digital market”, he said.
Adding his bit, Mr Alli, co-founder of Traction said the deal will help it achieve its original vision on a grander scale.
“This will allow us to scale our solutions and accelerate our vision of simplifying payments at the retail level. OmniRetail’s ecosystem will enable us to bring our innovative solutions to a wider audience, benefiting even more small businesses across Nigeria and beyond”, he noted.