An e-commerce startup based in Nigeria, recognized as one of the fastest-growing African companies by the Financial Times, has recently acquired Traction Apps. Traction Apps is a payment provider and inventory management solution catering to small businesses in Nigeria. This strategic move aims to enhance financial services and trade solutions for small and medium-sized enterprises (SMEs) operating within the fast-moving consumer goods (FMCG) sector.
Through the acquisition, OmniRetail will integrate Traction’s merchant POS services into its payment platform, Omnipay. The combined entity is expected to process over ₦1.8 trillion annually and facilitate loans worth ₦200 billion per year.
The CEO of OmniRetail expressed excitement about the acquisition, emphasizing the synergies between the two companies. The initial partnership to integrate Traction’s POS into OmniPay has evolved into a full merger. The goal is to simplify payments, enhance credit access, and provide loyalty solutions for retailers, enabling them to thrive in an increasingly digital market.
The transaction was facilitated by Venture Platform, an investor in both OmniRetail and Traction. While the exact value of the deal was not disclosed, as part of the acquisition, OmniRetail will absorb both debt and equity from Traction, ensuring that Traction’s investors benefit from the growth of the combined entity.
According to the co-founder of Traction, the integration with OmniRetail’s ecosystem will allow them to expand their innovative solutions to a broader audience, benefiting more small businesses in Nigeria and beyond.
Founded in 2020, Traction offers tailored payment acceptance, lending, and retail software solutions for small businesses. The founding team of Traction will join OmniRetail’s leadership team, focusing on expanding OmniPay, integrating solutions, and driving product development.
The full integration of Traction with OmniPay is anticipated to be completed by the end of Q1 2025, with enhanced services being rolled out to customers thereafter.