In a significant move, OmniRetail, a leading B2B e-commerce startup, has acquired Traction Apps, a Nigerian fintech startup, to bolster its financial services capabilities. This acquisition marks a growing trend of venture capitalists driving consolidations to create larger entities with greater potential for returns.

The all-stock deal gives Traction Apps' investors, including Multiple Partners, P1 Ventures, Ventures Platform, and Voltron Capital, stakes in OmniRetail, valued at $65 million in its last funding round. While the exact value of the deal remains undisclosed, investors are optimistic about the potential for exponential growth.

The integration of Traction Apps' financial services and its network of merchants is expected to significantly boost OmniRetail's growth, particularly through its proprietary financial service, OmniPay. OmniPay has already demonstrated its ability to increase efficiency and profitability in the fast-moving goods services sector, where margins range between 3% and 6%.

This acquisition also highlights the growing importance of fintech capabilities in the B2B e-commerce space. As predicted by Angela Strange, a general partner at Andrew Horowitz, every company is becoming a fintech company, and this deal is a testament to that trend.

The combined entity will service 180,000 customers in the wholesale and retail sectors, with annual transaction volumes projected at $1 billion and loan facilitation of $122 million annually. The acquisition is expected to attract fintech investors to OmniRetail, which has been seeking to raise funds in a Series A round.

This development is significant for the tech and startup community, as it demonstrates the increasing importance of fintech capabilities in driving growth and competitiveness in the B2B e-commerce space.