Traction Apps, a fintech startup backed by Ventures Platform, has confirmed layoffs following its acquisition by OmniRetail. The startup revealed the decision in a statement, attributing the job cuts to the integration process following the acquisition.
“After the acquisition of Traction Apps, we are streamlining certain departments to align with our broader strategic vision. This restructuring is part of a plan to boost efficiency and scalability across our operations, ensuring long-term growth. Most senior team members who played pivotal roles in Traction’s growth remain in place,” the company stated.
While Traction Apps did not disclose the exact number of employees or departments affected, sources close to the situation revealed that staff from the sales, engineering, and marketing teams were impacted. Despite the layoffs, some Traction employees have transitioned to new roles within OmniRetail, with the company still exploring additional opportunities for the rest of the workforce.
The layoffs occurred around a week before the acquisition announcement. Traction Apps’ co-founders, Mayowa Alli and Dolapo Adejuyigbe, have joined OmniRetail as Director of Technology for Payments and Director of Operations for Payments, respectively. The startup emphasized that all laid-off employees would receive severance packages in line with Nigerian labor laws, along with career counselling and job placement support.
The acquisition marks a significant move for Traction Apps, which was launched in 2020 by Alli and Adejuyigbe, both former McKinsey consultants. The fintech company developed point-of-sale software, virtual accounts, inventory management, and invoicing tools tailored for small and medium-sized businesses (SMBs) in Nigeria. Traction also offered PoS terminals, loans, and a customer management platform to help businesses grow.
Although the financial terms of the acquisition have not been disclosed, OmniRetail’s CEO, Deepankar Rustagi, indicated that the deal involved both debt and equity. The acquisition is expected to strengthen OmniRetail’s leadership and service delivery across the retail value chain, positioning it for continued growth in the sector.
