Nigerian merchant solution startup Traction secured $6 M Seed funding to accelerate growth

With the goal of expanding, accelerating growth, and fortifying its team, Nigerian merchant solution platform Traction has secured a US $6 million seed round of funding.

Traction has created a complete one-stop shop where companies can manage their finances, take payments, and obtain necessary operational tools. Companies can use point-of-sale software to track inventory, record sales, and manage customers with CRM and loyalty programs. They can also accept payments through virtual accounts or POS terminals.

Along with these financial services, the platform provides merchant wallets, bill payments, cash advance loans, savings accounts, and more. Traction was able to function as a provider of payment solutions for a number of different payment categories last year after obtaining a license from the Central Bank of Nigeria to provide payment solution services.

Multiply Partners and Ventures Platform led the startup’s US $6 million seed round, in which P1 Ventures and other investors also participated. The goal of the capital infusion is to accelerate the startup’s growth. Traction, which serves over 70,000 businesses in Nigeria, saw a 7x increase in revenue and an 8x surge in transactions in 2022. Over the next 18 months, Traction intends to investigate growth outside of Nigeria, either organically or through M&A, while the seed funding will be concentrated on scaling operations in Nigeria.

“Our goal at Traction is to be the digital operating system for businesses on the continent. We want to help them digitise their operations, efficiently manage finances, and make better-informed decisions,” said co-founder Mayowa Alli.

“Traction stands out as more than a payment processor, it is an indispensable growth partner to Nigerian SMEs. The company’s industry-specific software, including its financial services marketplace, offers relevant business solutions, affordable capital, and insurance. We’re excited about the team’s ability to continue delivering product innovation, and Traction’s potential to unlock immense value for SMEs, which are the bedrock of Africa’s economy,” said Dotun Olowoporoku, general partner at Ventures Platform.