Goodwell Investments, an impact investor, alongside Alitheia Capital, has recently injected funds into OmniRetail, a B2B e-commerce platform dedicated to digitizing the informal supply chain in sub-Saharan Africa. The investment, facilitated through Goodwell’s uMunthu II fund, marks the initiation of OmniRetail’s Series A fundraising round. Founded in 2019, OmniRetail aims to address the challenges faced by informal retailers in the region’s commerce value chain, offering digital infrastructure solutions. With over 140,000 small retailers and 90 brands already onboarded, OmniRetail is poised to revolutionize the retail industry in sub-Saharan Africa.
Why the Investors Invested
- Market Potential: The investment in OmniRetail is supported by the significant market potential within sub-Saharan Africa’s informal retail sector. The region’s informal retailers constitute a substantial portion of the economy, contributing significantly to GDP and providing livelihoods to millions. This data indicates a ripe market for OmniRetail’s digital infrastructure solutions to streamline supply chains and enhance economic stability.
- Social Impact: The decision to invest in OmniRetail is driven by its potential for positive social impact. The company’s focus on empowering underrepresented entrepreneurs, particularly women who make up 78% of its customer base, underscores its commitment to fostering inclusivity and economic empowerment. Such data highlights the alignment between the investment and the goal of supporting businesses that prioritize social responsibility alongside financial success.
- Innovative Solutions: OmniRetail’s innovative tools, such as OmniPay and Mplify, offer tangible solutions to address critical challenges within the informal supply chain. By providing essential resources for retailers to procure products, access credit, and optimize their businesses, OmniRetail addresses key pain points within the market. The presence of over 140,000 small retailers and 90 brands onboarded further indicates the effectiveness of these solutions and their potential for scalability.
- Expansion Plans: OmniRetail’s ambitious expansion plans, including strengthening its presence in Nigeria and scaling its digital offerings to Ghana and Cote d’Ivoire, signal growth opportunities for investors. Doubling in size by the end of 2024 reflects the company’s trajectory towards market penetration and revenue growth. This data supports the investment decision by showcasing OmniRetail’s commitment to expansion and its potential for generating returns.
- Alignment with Fund Strategy: The investment in OmniRetail aligns with the strategy of Goodwell Investments and Alitheia Capital, particularly their focus on supporting businesses driving financial inclusion in underserved communities. OmniRetail’s dedication to providing essential goods and services to underserved populations resonates with the fund’s objectives, reinforcing the rationale behind the investment decision.
Goodwell Investments is a private equity fund manager that focuses on investing in companies with a dual purpose: generating strong financial returns and creating positive social impact. They believe in the principle of “doing well by doing good.” Their investments are led by experts based in focus regions such as Kenya, Nigeria, and South Africa, combined with operational support from their team in the Netherlands. Alitheia Capital is a pioneering impact investing private equity firm based in Lagos, Nigeria
A Look at OmniRetail
OmniRetail, also known as OmniBiz, was founded in 2019 by Deepankar Rustagi. It initially started as a salesforce automation software company, catering to brands and distributors in the FMCG sector. The startup’s primary markets span sub-Saharan Africa, with a focus on regions like Nigeria, Ghana, and Cote d’Ivoire. However, in response to the COVID-19 pandemic, OmniRetail recognized the need to address the broader challenges within the retail value chain. As a result, they developed OmniBiz, an online shop that allows retailers to order stock and have it delivered within 24 hours. Alongside tools like OmniPay and Mplify, the startup equips retailers with the necessary resources to navigate the informal supply chain efficiently.
By bridging the gap between traditional commerce and digital innovation, OmniRetail aims to facilitate better access to essential goods, healthcare, and financial services, ultimately contributing to economic growth and prosperity in sub-Saharan Africa.