OmniRetail Technology Limited has acquired Traction Apps, a leading Nigerian payment solutions provider, in a move aimed at enhancing financial services for small and medium-sized enterprises (SMEs). The acquisition will enable the combined entity to process over ₦2 trillion ($1.2 billion) in payments and facilitate ₦200 billion ($122 million) in loans annually, serving a customer base of more than 160,000 in the wholesale and retail sectors. This development underscores the rising trend of consolidation within Nigeria’s fintech sector as players seek to expand their market influence.
OmniRetail, founded in 2019, has rapidly established itself as a B2B enablement platform designed to tackle the challenges of informal retail across Africa. With tools like OmniPay and Mplify, the company equips retailers with resources to streamline procurement, access credit, and optimize operations. The acquisition of Traction will allow OmniRetail to integrate its merchant POS services into OmniPay, creating a more comprehensive platform for SMEs.
The company’s CEO, Deepankar Rustagi, an Endeavor Nigeria entrepreneur, emphasized the strategic significance of the acquisition. “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. Together, we will simplify payments, credit access, and loyalty solutions for retailers and SMEs, helping them thrive in an increasingly digital market,” he said.
This acquisition comes on the heels of OmniRetail’s recent fundraising success. In April, the company raised an undisclosed amount from Goodwell Investments, an impact investor focused on emerging markets. This funding is part of a broader Series A round, which has helped OmniRetail raise over $19 million to date. The company’s flagship platform, Omnibiz, currently supports over 140,000 small retailers and 90 brands, positioning OmniRetail to play a pivotal role in reshaping Africa’s retail industry.
Traction Apps: A Rising Fintech Player
Traction, founded in 2020 by former McKinsey consultants Mayowa Alli and Dolapo Adejuyigbe, offers a range of payment solutions and operational tools tailored to the needs of SMEs. In 2022, the company raised $6 million in seed funding, led by Pan-African investor Ventures Platform and Multiply Partners, with participation from P1 Ventures. Traction’s mission from the outset has been to bridge the gap between traditional banking services and the specific financial needs of small businesses in Nigeria.
The platform enables merchants to process payments, manage inventory, and access services such as loans and bill payments. Traction’s co-CEO, Dolapo Adejuyigbe, has been vocal about the challenges SMEs face when dealing with traditional banks. “Banks often lack an understanding of SME activities and provide inadequate financial services. We wanted to create a bank-agnostic platform that not only handles payments but also offers end-to-end services like loans and savings,” Adejuyigbe explained.
Traction’s model has attracted a wide range of merchants, from small street vendors to more formal businesses across various sectors such as food, FMCG, and healthcare. The platform has processed billions in transactions and issued over ₦2 billion in loans, positioning itself as a significant player in the merchant payment space.
Consolidation in the Fintech Sector
The acquisition of Traction by OmniRetail reflects a broader trend of consolidation in Nigeria’s fintech landscape, where competition for dominance in the SME segment is intensifying. Fintech firms such as FairMoney, Moniepoint, and OPay have also been expanding their services to cater to the growing demand for merchant banking solutions. Traction’s differentiated approach, which integrates point-of-sale (POS) software with a wide range of financial tools, sets it apart from competitors that have traditionally relied on agent-led models.
“While the fintech space in Nigeria is crowded, the ability to offer tailored solutions that meet the specific needs of SMEs is what will differentiate the winners,” noted Mayowa Alli, co-CEO of Traction. “We’ve built a product that provides merchants with the tools they need from day one, and that has been the foundation of our success.”
As OmniRetail integrates Traction’s services into its platform, the combined company is set to deepen its footprint in Nigeria’s retail and financial services sector. The acquisition marks a significant step in OmniRetail’s long-term goal of providing robust digital infrastructure for Africa’s informal retail market — a sector that plays a critical role in driving economic growth and financial inclusion across the continent.
Looking ahead, both OmniRetail and Traction have expressed ambitions to expand beyond Nigeria. While OmniRetail is well-positioned to lead this charge, the roadmap for regional expansion remains focused on enhancing their core offerings before venturing into new markets.
The acquisition signals a new chapter for OmniRetail and Traction as they combine forces to create a more comprehensive suite of fintech solutions for SMEs. As consolidation continues to shape the fintech landscape, the success of this deal will depend on the execution of their shared vision: to empower small businesses through innovative financial solutions that promote growth and stability in Africa’s informal economy.
By creating a platform that addresses the full spectrum of SME needs — from payments to credit access — the two companies are setting a new standard in how financial services can be delivered to underserved sectors of the economy. As they continue to build momentum, the future of digital transformation in Africa’s retail sector looks increasingly promising.