Deepankar Rustagi, the founder of OmniRetail, is no stranger to building technology-driven marketplaces. After a challenging first venture, Vconnect, which launched in 2010 as one of Nigeria’s pioneering platforms for connecting freelancers and artisans, Rustagi has returned with renewed focus and a refined approach. OmniRetail, launched in 2019, seeks to revolutionize Nigeria’s supply chain for fast-moving consumer goods (FMCG).
A Journey to Reinvention
While Vconnect connected over 400,000 businesses, its inability to integrate payments in the pre-Flutterwave era hindered its sustainability, leading to its closure in 2017. Rustagi’s new venture, OmniRetail, takes a different approach—digitizing the traditional supply chain by linking retailers, distributors, and manufacturers in Nigeria’s large informal market.
Rustagi’s sales experience at Tolaram, the maker of Indomie noodles, played a pivotal role in shaping OmniRetail’s strategy. By applying technology to streamline logistics and processes, the company seeks to smooth the inefficiencies that have long plagued this sector.
Overcoming Challenges in Informal Markets
Africa’s informal market structure poses significant challenges. Traditional wholesalers dominate through vast networks and large purchase volumes, making them hard to replace. While some believe consolidation—like the Wasoko-MaxAB merger—is key, Rustagi supports a hybrid approach: combining consolidation of strong players with onboarding traditional middlemen through technology.
OmniRetail’s strategy is built on a “network of networks” involving three key platforms:
- Mplify for distributors.
- Omnibiz for retailers.
- OmniPay for payment solutions.
Retailers place orders via Omnibiz, distributors accept them on Mplify, and OmniPay facilitates seamless payments.
Rapid Growth and Scaling
Since its inception, OmniRetail has experienced remarkable growth, raising $3 million in 2021 and reporting ₦59.3 billion in revenue by 2022. In 2024, it topped the Financial Times list of Africa’s fastest-growing companies. Rustagi attributes this success to extensive market testing, starting with experiments in Surulere before scaling across Nigeria and into neighboring countries.
Currently, OmniRetail serves 140,000 retailers, 4,500 distributors, and 135 manufacturers, generating a monthly gross merchandise value (GMV) of $160 million. Its monetization strategy involves earning margins from distributors for faster product sales and offering manufacturers market insights to optimize production.
Profitability and Future Plans
Unlike many startups in the B2B e-commerce space, OmniRetail has achieved profitability. Rustagi shared that the company’s net profit margin has improved by 8%, with gross margins increasing by 4%. OmniRetail’s success is rooted in the food and beverage sector, a category with slim margins but steady profitability.
Expansion plans include growing into Francophone Africa under the leadership of Steve Dakayi, a former Jumia executive, and increasing operations in Nigeria from 10 cities to 24. Rustagi also plans to venture into other essential goods while steering clear of electronics.
Harnessing AI and Technology
OmniRetail has integrated Artificial Intelligence to provide retailers with insights into customer purchasing trends. These insights help retailers optimize inventory, increasing turnover and demand for credit. OmniRetail addresses this need through partnerships with financial institutions, including the Bank of Industry. Its payment platform, OmniPay, processes ₦20 billion monthly, with the potential for exponential growth.
Rustagi remains optimistic about OmniRetail’s future. Despite skepticism about the viability of the B2B e-commerce sector, he is confident the company has uncovered a sustainable path forward.
“Our goal is to grow 10x in three years,” he states, highlighting OmniRetail’s commitment to scaling and innovation in Africa’s evolving retail landscape.
