OmniRetail acquires Traction Apps, to process ₦2 trillion for SMEs annually

OmniRetail has acquired Traction Apps, a Nigerian-based merchant solution platform which raised $6 million last year.

The combined entity will now process about ₦2 trillion and facilitate loans worth ₦200 billion annually while serving 180,000 customers across wholesale and retail sectors, positioning itself as a leader in the FMCG space. This acquisition will allow Omniretails to integrate Traction’s merchant POS services into OmniPay’s existing ecosystem, creating an enhanced financial platform for retailers.

“This acquisition is a testament to the synergies we’ve built with Traction. What started as a partnership to integrate Traction’s POS into OmniPay for card payments has grown into a full merger,” Deepankar Rustagi, CEO of OmniRetail, said. “Together, we will simplify payments, credit access, and loyalty solutions for retailers and SMEs, helping them thrive in an increasingly digital market.”

OmniRetail, a unified consumer goods distribution platform launched in 2019, was recognised by the Financial Times as Africa's Fastest Growing Company in 2024. In 2022, the company introduced OmniPay, a payment platform that integrates with 13 financial institutions, streamlining collections and supplier payments. The company also recorded revenue of $139 million that year. By leveraging transaction data to assess creditworthiness, OmniPay empowers underserved retailers with the capital they need to thrive.

“Building Traction has been about empowering small businesses to grow and thrive," Dolapo Adejuyigbe, co-founder of Traction, said. "Now, as part of OmniRetail, we will become the leading growth partner for SMEs across Nigeria, offering a more comprehensive platform than ever before.”

Launched in 2020 by Mayowa Alli and Dolapo Adejuyigbe, Traction Apps has rapidly expanded to serve over 100,000 merchants. As a comprehensive platform, Traction provides payment acceptance, lending, and retail software solutions, empowering businesses to streamline their operations."

The acquisition will be implemented in phases, beginning with streamlining operations and integrating platforms. Traction's full integration with OmniPay is expected by the end of Q1 2025.

While neither of the companies disclosed the exact transaction value, Deepankar hinted at the acquisition's strategic benefits. He explained, 'By acquiring both debt and equity, we're not only gaining Traction's assets but also enabling its investors to participate in the future growth of the combined entity.