When Deepankar Rustagi last raised funds for OmnireTail in 2022, there was high excitement for African startups to address supply chains and the operational challenges of the rapidly moving consumer goods (FMCG) sector. At one point, these startups received more capital than all sectors except Fintech.
However, as various business models have struggled to put pressure on them lately, industry enthusiasm and venture capital interests have declined.
But for Rastagi, Omnire Tail is more than just another B2B commerce platform. Using technology and embedded funding in a scalable and profitable way to rebuild informal retailers across Nigeria and West Africa is an ambitious effort. Now, its vision has received further support in its $20 million Series A equity funding round. The capital is focusing on embedded financial products, which helped Omnireter expand its presence in Nigeria, Ghana and Ivory Coast.
The round is co-led by Norwegian Development Finance Agency Norfund and Lagos-based VC company Timon Capital, and is accompanied by subsequent participation from venture platforms, Alwa Capital, Goodwell Investments (via Alicia Capital), and a mill in Nigeria.
This marks the first direct equity investment of no funds in African startups, and according to Rastagi, Omnire Tale is on the path to dominating in segments where others struggle to increase profitability. Since its inception in 2019, OmnireTail has raised $38 million in equity and debt.
OmnireTail’s model digitizes order management for over 5,800 distributors and services to over 150,000 informal retailers in 12 cities in Nigeria, Ghana and Ivory Coast.
Retailers use the app to order stock, access working capital and make digital payments. In the background there is a third-party logistics network of distributed warehouse capacity managed by over 1,100 vehicles and 85 local logistics partners.
OmnireTail’s asset light strategy was important in achieving profitability. In 2023, the Lagos-based B2B e-commerce platform became EBITDA positive. In 2024, we made a net profit. A similar story has been unfolding in Egypt, with another B2B e-commerce platform, Kurtna, owing a push to profitability for the model.
Both CEOs say that Africa’s informal market is huge and consists of suppliers and distributors who don’t need to evacuate or compete, but that the technical tools the platform offers have become more efficient.
“The profitability journey is the result of the efficiency of using network-based assets, which proves that the model compiled as a ‘network of networks’ is profitable and highly scalable. We are now expanding to not only grow, but also to optimize. ”
He added that better occupancy of warehouses, smarter logistics routes, and penetration of deeper categories all improve margins.
In a conversation with TechCrunch, Rustagi, along with Omiretail’s investment officer Archit Bagaria, further explains that the company’s progress is also a deep understanding of the FMCG retail ecosystem, with the entire leadership team boasting decades of experience.
According to them, it offers the unique advantage of understanding how the value chain works, who the key players are, and where the vision gap lies.
“For years, products have been moving from point A to point B, but the lack of transparency has hampered financial inclusion and inefficiency in the process,” Bagalia said. “We can solve these problems by creating an ecosystem that streamlines this entire landscape.”
Once the startup reaches critical mass, Buggalia can easily tier additional services such as payments and per-buy payers (BNPLs) in addition to their existing infrastructure. “We think our approach is different from others and we have achieved success with this model,” Bagalia added.
Unlike other startups that jumped into offering credit products or launched wrongly, OmnireTail waited for a massive distribution scale and data. Thanks to this strategy, OmnireTail has been processed for over 1.3 trillion (~$810 million) in transactions last year, while Omnipay, a BNPL product, pays 19 billion (~$12 million) per month in stock credits, boasting a near-zero default.
Omnire Tale’s strategy was further strengthened by the acquisition of Nigeria-based merchant solutions platform traction app in 2024. Traction offers full stack payment capabilities such as POS devices, PSSPs, Super Agent licenses, and access to retailer-level sales data.
With OmnireTail, purchases allow you to acquire a full financial profile for each retailer, giving you more control over your supply chain and ability to deliver customized financial solutions.
“Every transaction in the FMCG value chain has two aspects: goods movement and capital movement,” Rustagi said. “Today, we are in a position to aggregate the greatest profits from every transaction in the value chain. Our plan is to dive deep into the value chain and maximize margins. International players are doing well in the market and are bringing that model to Nigeria today.”
The GMV figures are no longer public, but are shifting away from the metrics that were key performance indicators for the sector, but report a 35% increase in net product volume (NMV) and a 40% increase in revenue over the past year.
Some of our next moves are laser-centric. A robust debt increase for inventory finance, strategic acquisitions, and merciless, profitable growth. ”
With fresh capital of $20 million, OmnireTail will continue to grow its retailer-based system and expand into new product categories such as personal care, home care and cold storage.
Capital will also upgrade infrastructure, strengthen credit underwriting tools, and strengthen partnerships with domestic debt providers. So, some of the next moves include debt hikes for inventory finance and strategic acquisitions, according to Bagalia.
In Norfund’s case, OmnireTail represents more than just a fintech or commerce bet. It’s an infrastructure.
“Embedded Finance is one of the most transformative tools for the growth of small and medium-sized businesses in Africa,” says Norfund Investor Director Cathrine Conradi. “OmnireTail’s model brings capital to regions where traditional systems are not reaching.”
Meanwhile, Timon Capital, which has backed Omnire Tale from the seed stage, sees this as a breakout moment for the company.
“OmnireTail now shows how profitable growth can be achieved by reaching distribution, payment and credit inflection points and expanding its footprint,” the company said.