Traction Apps, a Nigerian fintech startup, recently confirmed that it will be laying off some employees as a result of its acquisition by OmniRetail. The company stated that this decision was made in order to align certain departments with the broader vision of the company post-acquisition.
In a statement released to Techpoint Africa, Traction Apps explained, “Following the acquisition of Traction Apps, as with all mergers and integrations, we are optimizing 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.”
Although the exact number of affected employees and departments were not disclosed, it was revealed that the sales, engineering, and marketing teams bore the brunt of the layoffs. However, Traction Apps assured that some members of the team have transitioned to roles within OmniRetail, with the company actively exploring further opportunities for others affected by the restructuring.
The co-founders of Traction Apps, Mayowa Alli and Dolapo Adejuyigbe, have joined OmniRetail in key leadership positions following the acquisition. Alli now serves as the Director of Technology for Payments, while Adejuyigbe is the Director of Operations for Payments. This move is part of the company’s strategy for integrating leadership post-merger.
Severance packages will be provided in accordance with Nigerian labor laws for those affected by the layoffs. Additionally, Traction Apps is offering career counseling and job placement services to aid employees during this transition period.
Traction Apps was founded in 2020 by former McKinsey consultants with a focus on providing financial solutions for small and medium-sized businesses (SMEs) in Nigeria. The startup offered point-of-sale software, virtual accounts, inventory management, and invoicing solutions, along with PoS terminals, loans, and a customer management tool for businesses.
The acquisition by OmniRetail signifies a strengthening of leadership capabilities to deliver enhanced services across the retail value chain. While financial details of the acquisition were not disclosed, OmniRetail mentioned that they are assuming both debt and equity from Traction Apps.
Overall, the acquisition and subsequent layoffs mark a strategic move for both companies to streamline operations and drive long-term growth in the Nigerian fintech landscape.
