African B2B e-commerce businesses managed to secure $423 million in funding between 2021 and 2022 by providing a solution that helped informal retailers restock inventory quickly by connecting them with wholesalers.
The challenge arose from the need to sell fast-moving consumer goods swiftly due to their short shelf life and high demand, which was hindered by delivery delays from distributors.
Through forming partnerships with manufacturers and leveraging their logistics fleet, B2B e-commerce companies inadvertently disrupted traditional distribution channels, leading to a competitive landscape.
Despite facing issues such as low margins and unit-level losses, OmniRetail, a B2B e-commerce company, claims to have found a profitable model by offering innovative products and services.
OmniRetail’s approach involves providing platforms like Omnibiz for retailers, Mplify for distributors, and Omnipay for facilitating payments, creating a seamless process for all parties involved.
By optimizing efficiency across different layers of the value chain, OmniRetail has managed to achieve profitability while maintaining an asset-light business model.