Launched in January 2020, Vendease initially operated as a marketplace connecting farms and suppliers to restaurants and food businesses in Nigeria. However, recognizing inefficiencies such as delays and inconsistent quality, the platform shifted its focus. Vendease now buys food products in bulk at discounted rates, stores them, and facilitates timely deliveries via third-party logistics, positioning itself as a comprehensive solution for food procurement.
This strategic pivot was pivotal to securing a $30 million Series A funding round, comprising $20 million in equity and $10 million in debt. The funding, led by TLcom Capital and Partech Africa, aims to deepen Vendease’s presence in Nigeria and Ghana, expand into new markets, and develop innovative solutions to improve customer efficiency.
Tackling Supply Chain Challenges
Vendease addresses a critical pain point in Africa’s food supply chain: the $100 billion in annual losses faced by businesses due to unreliable supplies, wastage, and inadequate data for informed procurement decisions. The platform also offers a Buy Now, Pay Later (BNPL) feature, allowing businesses to access working capital for inventory purchases. To date, Vendease has facilitated over $12 million in financing and has helped businesses save $2 million in procurement costs and $500,000 in wastage.
CEO Tunde Kara explains how the platform leverages data to optimize inventory management and reduce waste. By providing real-time tracking and analytics, Vendease ensures businesses purchase only what they need, significantly cutting costs and enhancing operational efficiency.
Accelerating Growth and Impact
Over the past year, Vendease has achieved remarkable milestones, including a fivefold revenue increase and a reduction in delivery times from 24 to 12 hours. The company has moved 400,000 metric tonnes of food for over 2,000 customers, including restaurants, hotels, hospitals, and schools. As Vendease looks to the future, it envisions itself as a plug-and-play solution for new food businesses across Africa. With backing from prominent investors and a growing demand for streamlined food procurement, the platform is poised to drive significant change in the continent’s fragmented food supply chain.
A Vision for the Future
Despite global challenges like inflation and food shortages, Vendease remains committed to supporting its customers by ensuring stable stock levels and cost savings. With plans to extend its technology further into Africa and beyond, the company aims to become a leading force in revolutionizing the food system.
“Even in the face of global food supply challenges, we’re helping businesses save big and maintain stability,” says Kara. “Our mission is to entrench this impact across Africa and the rest of the world.”
This new phase for Vendease signals a promising shift in how food businesses across Africa manage procurement, logistics, and inventory, paving the way for a more efficient and resilient food ecosystem.
