Omnibiz set to digitize Nigeria’s informal B2B supply chain, gets $3M funding

Omnibiz, a Nigerian-based startup has raised a seed round of $3 million to expand into new markets. Omnibiz is a B2B e-commerce platform that connects fast-moving consumer goods (FMCGs) manufacturers to retailers by digitizing the supply chain stakeholders.

The platform offers a mobile app, WhatsApp channel, and a phone number that retailers can use to stock their shops. Omnibiz says in a statement that retailers “can place orders at their convenience and have goods delivered to their doorstep at no cost.”

Omnibiz set to digitize Nigeria’s informal B2B supply chain, gets $3M funding
Omnibiz was launched in 2019 by Deepankar Rustagi. The Indian founder and CEO who has stayed in Nigeria for over two decades started his first startup, VConnect, in 2011 as an online marketplace and search engine to find local professionals for service needs. The platform connected individuals with more than 100 services and over 500,000 listed businesses across the country before shutting down in 2017, Rustagi claims.

Omnibiz operates an asset-light retail distribution model. When a retailer makes an order on the Omnibiz platform, it is requested from partner distributors who store goods on behalf of manufacturers and are traditionally known to help out with warehousing and transportation.

With Omnibiz, these distributors can focus solely on warehousing and pass on the responsibility of transporting goods to Omnibiz’s third-party logistics providers. The drivers of these logistics providers use Omnibiz to efficiently distribute the orders to the retailers within 24 hours.

Digitizing this value chain helps retailers save working capital while Omnibiz connects them with more than 20 brands, including Coca-Cola, Nestlé, Kellogg’s, Unilever, Procter & Gamble, and Kimberly-Clark.

The B2B e-commerce retail company is currently in four cities across Nigeria — Lagos, Abuja, Port Harcourt, and Kaduna. The company plan to add two more cities, Ibadan and Kano, before the end of August 2021.

The B2B informal e-commerce market has seen a resurgence in the last couple of years. Kenya’s Sokowatch and Twiga, Nigeria’s TradeDepot, and Egypt’s MaxAB have longed vied for market-leader positions in their respective markets. The pandemic spiked more interest in their activities as all the aforementioned startups have raised money this past year, including newcomers Kenya’s MarketForce and now Omnibiz. Some operate asset-light models, while others take up the responsibility of managing the end-to-end digitization process like Omnibiz.

Omnibiz’s seed round was led by V&R Africa, Timon Capital and Tangerine Insurance. The round also included Lofty Inc., Musha Ventures, Sunu Capital, Launch Africa, and Rising Tide Africa. It takes the company’s total investment to $4 million. Rustagi also disclosed that the company also got funding from Seedstars and will participate in the accelerator’s growth program.

Over the next few months, Omnibiz will use the investment to expand in other West African cities outside Nigeria —  Abidjan, Takoradi, Kumasi and Accra. Food, non-alcoholic beverages, personal care, and baby care products are the top categories on the Omnibiz platform. The company is planning to expand into new categories like alcoholic beverages and OTC pharmaceutical products.

Omnibiz will also use the investment to create new tech products that will enhance value for the retailers. The company will work with partners to increase the working capital availability for the retailers and digital tools to manage their business more efficiently.