What African B2B e-commerce startups can learn from OmniRetail’s profitable run
- Hundreds of millions of dollars have been invested in B2B e-commerce and retail in Africa, but the sustainability of this sector is now being questioned.
- Many B2B e-commerce startups have struggled to keep subsidizing their products and expanding operations, leading to retreats, closures, downsizing, and mergers.
- OmniRetail, a Nigerian B2B e-commerce startup, has achieved profitability by partnering with brands, diversifying its offerings, and implementing an asset-light model.
The B2B e-commerce and retail sector in Africa has seen significant investment, but the challenges of funding constraints, tighter margins, and competition are now becoming apparent. While many startups have struggled, OmniRetail stands out as a success story, achieving profitability through strategic partnerships and an asset-light model. However, the sector as a whole needs to address these challenges to ensure long-term sustainability.
