Nigerian startup Ovaloop is building inventory and payment tools specifically designed for local retailers, aiming to solve problems that generic software often overlooks. The company has identified that many small retailers struggle with stock management, record-keeping, and accepting digital payments, which limits their growth.
Filling a Gap in Retail Technology
According to Ovaloop founder and CEO, Tunde Adebayo, existing solutions are either too expensive or not adapted to the way Nigerian retailers operate. “We saw that shop owners were using notebooks or basic spreadsheets, and payment systems were often separate and costly,” he said. Ovaloop’s platform integrates inventory tracking with mobile money and bank transfers, allowing retailers to manage stock and sales from a single dashboard.
The startup has already onboarded over 500 retailers in Lagos and plans to expand to other states. Early users report saving an average of 10 hours per week on administrative tasks. “Before Ovaloop, I had to manually count stock every evening. Now I can see what’s low and reorder instantly,” said Chidinma Okafor, a retailer in Yaba.
Designed for Local Challenges
Ovaloop’s tools work offline and sync when internet is available, addressing connectivity issues common in many markets. The payment system supports USSD and QR codes, making it accessible even for customers without smartphones. Transaction fees are kept low at 0.5% per payment, significantly cheaper than traditional POS terminals.
The company raised $1.2 million in seed funding from pan-African investors to accelerate development and marketing. Adebayo noted that the goal is to reach 50,000 retailers within two years. “We are not just building software; we are building an ecosystem that helps small businesses thrive,” he added.
Impact on Retail Sector
With over 40 million micro, small, and medium enterprises (MSMEs) in Nigeria, many in retail, Ovaloop’s approach could have a significant impact on formalizing the sector. The startup plans to introduce credit scoring based on transaction history, enabling retailers to access small loans. This feature is expected to launch in 2027.
