Silverbacks Holdings, an African-focused private investment firm, recently made headlines with its successful partial exit from OmniRetail, a Nigerian B2B e-commerce startup. The firm sold a portion of its stake in OmniRetail, securing a remarkable 5x return on its initial investment. This achievement comes hot on the heels of Silverbacks’ impressive 29x return from its previous exit with Lemfi, showcasing the firm’s prowess in identifying and nurturing successful ventures.
OmniRetail, founded in 2019, has quickly made a name for itself in the African business landscape by connecting 150,000 retailers with 5,800 distributors and fast-moving consumer goods (FMCG) manufacturers through its innovative e-commerce platform. The company’s rapid growth trajectory is evident in its staggering revenue increase of 71,818%, soaring from $280,000 in 2020 to over $120 million in 2023. In 2024 alone, OmniRetail processed more than ₦1.3 trillion ($810 million) in deals and achieved profitability, cementing its position as one of Africa’s fastest-growing businesses.
“Silverbacks has been a truly resourceful early investor and a consistent contributor to the growth of OmniRetail’s network,”
remarked Deepankar Rustagi, OmniRetail’s CEO, appreciating Silverbacks’ instrumental role in the company’s success. The recent partial exit marks Silverbacks’ ninth profitable exit, further solidifying its track record as a savvy investor in the African market.
Ibrahim Sagna, Executive Chairman of Silverbacks Holdings, emphasized the strategic significance of this exit, stating,
“This 9th exit is another validation of our long-term strategy and reaffirms the exceptional calibre of entrepreneurs we support.”
The successful exit not only underscores Silverbacks’ investment acumen but also highlights the quality of the entrepreneurial talent it backs.
The trend of investors finding liquidity through secondary sales in Africa’s maturing startup ecosystem is exemplified by Silverbacks’ recent move. The firm’s Nigerian portfolio has yielded impressive returns, averaging a 10.7x multiple on invested capital (MOIC) and an 81.5% internal rate of return (IRR) in just over two years. In comparison, exits in Egypt have been even more lucrative, with a 9.7x MOIC and a 339% IRR over a shorter period, reflecting the diverse investment landscape in different African markets.
“Investing in Africa is not only viable but also a smart move for generating superior returns,”
affirmed Silverbacks, citing the robust performance of its African investments, particularly in the fintech sector. The firm’s African portfolio spans various industries, including fintech, media, sports, and fashion, with investments in notable ventures such as Moove, Wave, Flutterwave, and the Cape Town Tigers Basketball Club.
As Silverbacks continues to navigate the dynamic African investment landscape, its strategic exits and strong returns serve as a testament to the potential and opportunities present in the continent’s burgeoning startup ecosystem. With a keen eye for promising ventures and a commitment to supporting entrepreneurial excellence, Silverbacks exemplifies the power of strategic investment in driving economic growth and innovation across Africa.
In conclusion, Silverbacks’ successful exit from OmniRetail not only highlights the firm’s investment acumen but also underscores the resilience and potential of African startups. As the continent’s entrepreneurial ecosystem continues to evolve and mature, strategic investments and partnerships play a crucial role in fostering innovation, driving economic growth, and creating sustainable value for investors, entrepreneurs, and the broader African community.
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