Grace Ashiru
Traction Apps, a Nigerian fintech startup, confirmed in a statement to Techpoint Africa that it will lay off some employees following its recent acquisition by
OmniRetail. The company stated that the decision was partially influenced by the acquisition.
“Following the acquisition of Traction Apps, as with all mergers and integrations, we are optimising certain departments to align with our broader vision. This restructuring is a strategic step to enhance efficiency and scalability across our value chain, ensuring that we remain well-positioned for long-term growth. Most of the senior team members who played a key role in the growth of Traction have been retained,” the statement read.
Traction Apps declined to share specifics on the number of affected employees or departments, but a source close to the matter revealed that the sales, engineering, and marketing teams were impacted by the layoffs.
The startup added that some members of the Traction team have transitioned to roles within OmniRetail, while it continues exploring “further opportunities for others.” This transition is part of the company’s broader efforts to streamline operations following the acquisition.
Affected employees were reportedly informed of the decision about a week before the acquisition, which saw co-founders Mayowa Alli and Dolapo Adejuyigbe join OmniRetail as Director of Technology for Payments and Director of Operations for Payments, respectively. This move is part of the leadership integration strategy following the merger.
According to the startup, severance packages will be provided for affected employees in accordance with Nigerian labor laws. Additionally, Traction Apps is offering career counseling and job placement services to assist those impacted by the layoffs during this transition.
“With the acquisition of Traction Apps, we are strengthening our leadership capabilities to deliver best-in-class services across the retail value chain,” the statement read, further clarifying that no members of Traction’s leadership team will be affected by the layoffs.
Both founders, former McKinsey consultants, founded Traction Apps in 2020 after gaining experience working on financial inclusion initiatives at McKinsey. The startup developed point-of-sale software, virtual accounts, inventory management, and invoicing solutions tailored for small and medium-sized businesses (SMEs) in Nigeria.
Traction Apps also provided point-of-sale (PoS) terminals, loans, and a customer management tool for businesses. A partnership with OmniRetail eventually led to the acquisition of Traction by OmniRetail.
Financial details of the acquisition were not disclosed; however, OmniRetail Founder and CEO Deepankar Rustagi mentioned that the company is assuming both debt and equity from Traction Apps.
