Traction Founders: Dolapo Adejuyigbe and Mayowa Alli (L-R)
Traction Apps, a fintech startup, will lay off some employees following its recently announced acquisition by OmniRetail, the startup confirmed in a statement to Techpoint Africa noting that the decision was partially motivated by the acquisition.
“Following the acquisition of Traction Apps, as with all mergers and integrations, we are optimising 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,” the statement read.
Traction Apps declined to share specifics on the number of affected employees or departments, but a source close to the matter revealed that the sales, engineering, and marketing teams were affected.
The startup added that some members of the Traction team have transitioned to roles within OmniRetail even as it continues exploring “further opportunities for others.”
Affected employees were reportedly informed of the decision about a week before the acquisition which saw co-founders Mayowa Alli and Dolapo Adejuyigbe join OmniRetail as Director of Technology for Payments and Director of Operations for Payments, respectively.
According to the startup, severance packages will be provided for affected employees in accordance with Nigerian labour laws, while it offers them career counselling and job placement services.
“With the acquisition of Traction Apps, we are strengthening our leadership capabilities to deliver best-in-class services across the retail value chain,” the statement read, clarifying that no members of Traction’s leadership team will be affected by the layoffs.
Both founders, ex McKinsey consultants, founded Traction Apps in 2020 following their experience working on financial inclusion initiatives at McKinsey. The startup built point-of-sale software, virtual accounts, inventory management, and invoicing solutions for small and medium-sized businesses in Nigeria.
It also provided PoS terminals, loans, and a customer management tool for businesses. A partnership with OmniRetail ultimately ended in an acquisition by the latter.
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Financial details of the acquisition were not disclosed although OmniRetail Founder and CEO, Deepankar Rustagi disclosed that it was taking on both debt and equity from Traction Apps.
