Nigerian startup Omnibiz, a B2B e-commerce platform that connects manufacturers and distributors of fast-moving consumer goods (FMCG) to retailers, has raised a US$3 million seed round to fuel its growth and expand into new markets.
Founded in June 2019 by Deepankar Rustagi, Omnibiz allows retailers to place orders at their convenience and have goods delivered to their doorstep with zero delivery costs. Retailers can stock up their shops using the company’s mobile apps, WhatsApp channel, or a dedicated care number.
To fuel its growth and expand across Africa, Omnibiz has raised a US$3 million seed funding round led by V&R Africa, Timon Capital and Tangerine Insurance. The round, which took the startup’s total secured funding to US$4 million, also included Lofty Inc, Musha Ventures, Sunu Capital, Launch Africa, Ventures Platform and Rising Tide Africa. Omnibiz also got funding from Seedstars and will be participating in the Seedstars Growth Programme.
The startup has seen growth of 25 per cent month-on-month over the last year, and over the next few months plans on expanding into further West African cities. Aside from Lagos, Omnibiz also plans operations in Ibadan, Abuja, Kano, Port Harcourt, Abidjan, Takoradi, Kumasi, and Accra, among others. The investment will also be used to develop new tech products to enhance value for retailers.
“Omnibiz Africa has grown at a commendable rate since inception. We have strengthened our relationship with manufacturers and distributors of FMCGs to provide ease and convenience for retailers. Our execution and tech-enabled solution sets us apart from similar companies within the sector,” Rustagi said.
Lofty Inc’s Idris Ayodeji Bello said the founding team at Omnibiz had “lived logistics, supply chains of FMCG all their lives”.
“Omnibiz is setting the standards for the B2B retail space in Africa through technology. At LoftyInc Capital Management, we have spent time looking at this problem across the continent, One couldn’t have asked for a better team than Deepankar and the Omnibiz team to crack this difficult problem,” he said.
Ventures Platform’s Kola Aina said he had been very impressed with the vast retail, FMCG, tech and e-commerce experience of the management team.
“They have spent years working with millions of retailers and small businesses in Africa, so they deeply understand the problem, are well networked and their platform approach would create massive value, not just for manufacturers but for retailers which in essence makes the switching cost high,” he said.