AgriFood-tech startup, Vendease, has closed a $3.2million seed round led by Global Founders Capital with participation from Y Combinator, Hustle Fund, Liquid 2 Ventures, Hack VC, Soma Capital.
Early backers also include Tayo Oviosu (Paga), John Obaro (Remita) and Magic fund.
Founded in January 2020, by Tunde Kara, Olumide Fayankin, Gatumi Aliyu and Wale Oyepeju, Vendease is solving Africa’s food supply chain problems by digitizing- procurement processes, storage operations, logistics and offering flexible payment systems to help food businesses grow.
This funding round will help Vendease expand its operations and build out its technology. Since starting, the company has made tremendous impact and grown rapidly, achieving 17x growth in revenue within the last 9 months.
Don Stalter, managing partner, Global Founders Capital (USA), commended the team thus:
“As a backer of one of Africa’s very first unicorns, Jumia, we’ve seen a great deal of talent in the market – and Tunde & the Vendease team are best in class both in EMEA and globally. Their laser focus and rapid growth are unprecedented, and there’s a massive opportunity ahead”
How Vendease Operates
Through its mobile and web apps, Vendease allows food businesses to place orders for food supplies, manage inventory, track expenses and gain access to credit facilities.
To achieve this, Vendease has built a network of farmers and food manufacturers that ensure food businesses using its platform can get better margins, quality food produce and fast delivery.
This process saves procurement costs and man-hours, giving these businesses the convenience of focusing on delivering food experiences to consumers at the bottom of the chain.
In September 2021, Vendease delivered approximately 100,000 metric tons of food and has helped restaurants save approximately 5000 man-hours in the last 9 months. This has helped the startup to hit a $12.9 million transaction volume in September 2021.
What’s next after the funding?
Africa’s highly fragmented food sector faces many challenges & inefficiencies. Technology plays a major role in resolving these problems- a gap that Vendease perfectly fills.
Commenting on this, Tunde Kara, the CEO said,
“The rising food inflation coupled with effects of COVID-19 across Africa has positioned Vendease to scale up food systems by digitizing end-to-end processes from farm to table. We currently operate out of Lagos, Ibadan & Abuja, but this funding will act as a buoy for us, as we scale our solution to other cities across the continent.”
Vendease ultimately hopes to build the operating system for food supply in Africa.
More about Startup
Vendease is Africa’s leading food-tech startup digitizing its food supply chain. Backed by YCombinator, the startup operates an online marketplace that allows restaurants and other food businesses to buy directly from farms and food manufacturers.