OmniRetail acquires payment provider Traction to enhance financial solutions

OmniRetail, a Nigerian-based B2B e-commerce startup recognised as the Financial Times’ fastest-growing African company, has acquired Traction Apps, a payment provider and inventory management solution for small businesses in Nigeria. This move aims to boost financial services and trade solutions for small and medium-sized enterprises (SMEs) within the fast-moving consumer goods (FMCG) sector.

By acquiring Traction’s merchant POS services, OmniRetail will integrate Traction with its payment platform Omnipay. The newly combined entity is projected to process over ₦1.8 trillion annually and facilitate loans worth ₦200 billion per year.

“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”, Rustagi Deepankar, CEO of OmniRetail said. 

The transaction was facilitated by Venture Platform, an investor in both OmniRetail and Traction. Both teams declined to disclose the transaction value of the deal. However, as part of the acquisition, OmniRetail will onboard both debt and equity from Traction, allowing Traction’s investors to benefit from the continued growth of the combined entity.

“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”, Mayowa Alli, co-founder of Traction said.

Founded in 2020 by Mayowa Alli and Dolapo Adejuyigbe, Traction offers payment acceptance, lending, and retail software solutions tailored for small businesses. Its founding team will join OmniRetail’s leadership, focusing on growing OmniPay, integrating solutions, and driving product development.

The full integration of Traction with OmniPay is expected to be completed by the end of Q1 2025, with enhanced services rolling out to customers thereafter.