Vendease Has Raised $3.2 Million In Seed Funding To Enable It To Expand Its Credit Services To More Customers
Vendease has raised $3.2 million in seed funding to enable it to expand its credit services to more customers
Nigerian food technology company Vendease has announced the completion of a $3.2 million seed funding round. The company is based in Lagos.
Founders Capital, a San Francisco-based venture capital firm, was the primary investor in the round. Y Combinator, Hustle Fund, Liquid 2 Ventures, Hack VC, Soma Capital, and Magic Fund are among the other firms that are taking part in the competition. The round was also attended by angel investors such as Tayo Oviosu, CEO of Paga, and John Obaro, CEO of Remita, who were both present.
Food-related businesses in Africa can place direct orders with farms and manufacturers through VendEase, an online marketplace that connects them to them. Vendease is a software platform that enables owners and managers of food service businesses to digitally track and automate their purchasing and inventory management processes.
Additionally, Vendease provides analytics to businesses to assist them in increasing profitability and reducing wasted resources. In addition, the startup owns a warehouse and employs logistics services to ensure that orders are delivered on time.
Founded in January 2020 by Tunde Kara, Olumide Fayankin, Wale Oyepeju, and Olumide Fayankin, Vendease is a Nigerian cryptocurrency exchange. Over the course of that time, the company has moved 100,000 metric tons of food, processed $12.9 million in transactions, and generated $1.2 million in recurring annual revenue.
Speaking about the investment, Global Founders Capital's managing partner emphasized the team's excellence as well as its potential for growth in the future.
Business Operations of Vendease
Nigeria has one of the world's highest inflation rates, ranking second only to China. Nigerians will see a 19.57 percent increase in the cost of food between September 2020 and September 2021.
Using a predictive analysis and storage system, the startup helps businesses forecast future food prices, stockpile supplies, and set their prices for any length of time based on the food category they are selling in.
Vendease is currently active in three Nigerian cities — Lagos, Abuja, and Ibadan — and has formed partnerships with some of the country's most well-known food brands, including Hard Rock, Krispy Kreme, and Shiro.
A list of all potential suppliers who can fill a restaurant or food business order is automatically generated when a restaurant or food business places an order. A comparison of pricing and quality is then performed, with orders being placed with the supplier with the lowest price being selected. Delivery is claimed to be made within 24 hours, either directly or through third-party logistics providers, according to the company.
According to Tunde Kara, the company's CEO, the funding will be used to expand the company's operations into additional cities and countries by the end of the first quarter of the following year.
Additionally, the funds will be used to improve the startup's technology stack and to establish partnerships with a number of payment platforms and banks in order to broaden the range of financial products it offers, particularly credit services, to customers.
