A Strategic Move to Empower Small and Medium Enterprises (SMEs)
OmniRetail has made a significant stride in enhancing its services by acquiring Traction Apps, a leading payment solutions provider. This strategic acquisition is aimed at expanding OmniRetail's financial services and trade solutions for small and medium-sized enterprises (SMEs), further solidifying its presence in the fast-moving consumer goods (FMCG) sector.
Expanding Market Reach and Financial Services
With the acquisition, the combined entity will manage over N2 trillion in transactions and provide loans valued at N200 billion annually. The platform now serves 160,000 customers across wholesale and retail sectors, making it a formidable player in the FMCG industry. This expanded market reach positions the new entity as a leader in providing financial services to SMEs.
OmniPay: A Seamless Payments Platform
OmniRetail, which has been dedicated to solving the pain points of SMEs in the FMCG space since 2019, launched its payments platform, OmniPay, in 2022. OmniPay integrates with 13 financial service providers, offering seamless solutions for collections and supplier payments. What sets OmniPay apart is its ability to utilize transaction data to build creditworthiness scores for underserved retailers, providing them with the necessary capital for growth.
Synergy Between OmniRetail and Traction
Commenting on the acquisition, Deepankar, CEO of OmniRetail, emphasized the synergy between the two companies, stating, "This acquisition is a testament to the collaboration we've built with Traction. What began as a partnership to integrate Traction’s POS into OmniPay for card payments has now evolved into a full merger. Together, we will simplify payments, credit access, and loyalty solutions, helping SMEs thrive in the digital market."
Traction’s Merchant-Focused Solutions
Traction Apps, which has grown its customer base to over 100,000 merchants, offers a one-stop platform that includes payment acceptance, lending, and retail software solutions. The acquisition allows OmniRetail to integrate Traction’s merchant POS services into its ecosystem, creating a more robust financial platform. Mayowa Alli, co-founder at Traction, highlighted, “This integration will allow us to scale our solutions and accelerate our mission of simplifying payments at the retail level, enabling us to reach a wider audience.”
A Unified Platform for SME Growth
The acquisition aligns with OmniRetail's mission to bridge the gap between retailers and financial services. By combining Traction’s offerings with OmniPay’s existing services, the newly merged platform will enhance access to financial resources, improve operational efficiency, and provide SMEs with a holistic solution in the FMCG space.
Traction’s innovative services complement OmniPay’s existing portfolio, creating a differentiated solution that stands out among other fintech providers. The merger is expected to increase customer satisfaction and improve service delivery across both platforms.
Strengthening the Fintech Ecosystem
Dotun Olowoporoku, partner at Venture Platform, which is a key investor, praised the acquisition, stating, “We believe in leveraging the strengths of our portfolio companies to create more robust solutions. This acquisition represents a major leap forward in building more comprehensive offerings for African SMEs.”
Phased Integration and Future Outlook
Full Integration by Q1 2025
The acquisition will be rolled out in phases, starting with the integration of the OmniPay and Traction teams. The platform integration will follow, with full implementation expected by the end of Q1 2025. Enhanced services will be gradually introduced to customers after the integration, providing them with access to improved financial tools and resources.
