Nigerian B2B eCommerce startup, OmniRetail acquires Traction Apps, a Nigerian fintech, for an undisclosed fee.
Traction Apps, founded by ex-McKinsey consultants Mayowa Alli and Dolapo Adejuyigbe, built payment tools for small businesses in Nigeria, reaching over 100,000 merchants in nearly four years. In 2023, it raised $6 million in a seed round that saw Ventures Platform, Multiply Partners, and P1 Ventures invest.
The startup hoped to leverage the data from the payment activities recorded by merchants to offer additional financial services.
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Following the acquisition, the Traction PoS solution will be integrated into OmniPay, a payment solution launched by OmniRetail in 2020. The integration, which will be managed in phases, is expected to be completed by the end of Q1 2025.
What happens to Traction’s founding team
Traction’s founding team will join OmniRetail with the goal of growing OmniPay. Alli joins as Director of Technology for Payments while Adejuyigbe joins as Director of Operations for Payments.
“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,” Deepankar Rustagi said in a statement.
According to Alli and Adejuyigbe, the acquisition will enable Traction’s services to reach a larger audience.
“As part of OmniRetail, we will become the leading growth partner for SMEs across Nigeria, offering a more comprehensive platform than ever before,” Adejuyigbe noted.
Over ₦1.8 trillion in transactions and ₦200 billion in loans will be processed annually by the newly formed entity. Meanwhile, its customer base will grow to 180,000 merchants.
Ventures Platform, an investor in both startups, was involved in the transaction and previously assisted in the acqu
“We believe in leveraging the strengths of our portfolio companies to create more robust solutions. This acquisition is a major step forward in building more comprehensive offerings for African SMEs,” Dotun Olowoporoku, Managing Partner at Ventures Platform, said.
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