On Tuesday, October 22, Nigerian B2B eCommerce startup OmniRetail announced its acquisition of Traction Apps, a fintech company, for an undisclosed amount.
Founded by former McKinsey consultants Mayowa Alli and Dolapo Adejuyigbe, Traction Apps has developed payment tools for small businesses in Nigeria, reaching over 100,000 merchants in just four years. In 2023, Traction Apps raised $6 million in a seed funding round, with investments from Ventures Platform, Multiply Partners, and P1 Ventures.
The startup plans to use data from merchant payment activities to provide additional financial services. Following the acquisition, Traction’s point-of-sale (PoS) solution will be integrated into OmniPay, a payment solution launched by OmniRetail in 2020. This integration will take place in phases, with completion expected by the end of Q1 2025.
The founding team of Traction will join OmniRetail to help grow OmniPay, with Alli taking on the role of Director of Technology for Payments and Adejuyigbe becoming 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,” said Deepankar Rustagi, OmniRetail’s representative.
Alli and Adejuyigbe believe that the acquisition will help expand Traction’s services to a wider 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.
The new entity is projected to process over ₦1.8 trillion in transactions and ₦200 billion in loans annually, growing its customer base to 180,000 merchants.
Ventures Platform, an investor in both companies, played a key role in the transaction. Dotun Olowoporoku, Managing Partner at Ventures Platform, stated, “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.”
