Nigerian merchant solution platform Traction has raised a US$6 million seed round in funding to drive expansion, accelerate growth, and strengthen its team.
Traction has developed a comprehensive one-stop platform that enables businesses to accept payments, manage finances, and access essential operational tools. Business owners can accept payments via POS terminals or virtual accounts, use point-of-sale software to record their sales, track inventory, and manage customers through CRM and loyalty solutions.
The platform also offers a range of financial services, including merchant wallets, cash advance loans, savings, and bill payments. Traction obtained a payments solution services license from the Central Bank of Nigeria last year, allowing it to operate as a payment solution provider across various payment categories.
The startup’s US$6 million seed round was led by Multiply Partners and Ventures Platform, with participation from P1 Ventures amongst other investors. The capital infusion aims to speed the startup’s growth, with Traction having seen a 7x increase in revenue and an 8x surge in transactions in 2022, while serving over 70,000 businesses in Nigeria. While the seed funding will be focused on scaling operations in Nigeria, Traction plans over the next 18 months to explore growth outside Nigeria, either organically or through M&A.
“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.
