Following its recent acquisition by OmniRetail, fintech startup Traction Apps has announced plans to downsize its workforce. In a recent statement, the company explained that the layoffs are a consequence of the acquisition, aimed at optimizing operations and aligning with the company’s future goals.
As part of the integration process with OmniRetail, we are streamlining certain functions to better match our long-term vision. This reorganization is designed to improve our operational efficiency and scalability, ensuring our competitive edge and growth sustainability. We have managed to retain most of the senior team members who have been instrumental in Traction Apps’ development.
While Traction Apps has not disclosed the exact number of employees or the specific departments that will be impacted, insider information suggests that the sales, engineering, and marketing divisions are among those affected. The company also mentioned that some Traction team members are being reassigned within OmniRetail, and efforts are underway to identify additional opportunities for others.
The affected employees were notified about the layoffs approximately a week prior to the public announcement of the acquisition. As part of the acquisition, Traction Apps co-founders Mayowa Alli and Dolapo Adejuyigbe have taken on new roles at OmniRetail as Director of Technology for Payments and Director of Operations for Payments, respectively.
Traction Apps has committed to providing severance packages in line with Nigerian labor laws, along with career counseling and job placement support for those impacted by the layoffs. The statement further clarified that the acquisition aims to bolster the company’s leadership and enhance its offerings across the retail sector, assuring that no leadership team members will face layoffs.
Founded in 2020 by former McKinsey consultants Mayowa Alli and Dolapo Adejuyigbe, Traction Apps developed a suite of services including point-of-sale software, virtual accounts, inventory management, and invoicing solutions tailored for small and medium-sized enterprises in Nigeria.
The startup also offered PoS terminals, loans, and customer management tools. Its partnership with OmniRetail eventually led to the acquisition. Although the financial terms of the deal were not disclosed, OmniRetail’s Founder and CEO, Deepankar Rustagi, revealed that the acquisition involved both debt and equity components from Traction Apps.
