Food procurement company Vendease raises $30 million in seed funding

Food procurement company Vendease raises $30 million in seed funding

Nigerian food procurement platform Vendease has raised $30 million in its Series A funding round which it aims to use in deepening operations and launching better services.

Vendease, which was founded in January 2020, entered the market with the purpose of creating a platform that connected farms and food suppliers to restaurants and food businesses, while also trying to fix the deficiencies that occurred in the Nigerian food sector.

However, due to complaints over food quality and lengthy delivery time by some of its customers, the company restructured itself from a middleman to an online marketplace that buys, stores and delivers food products to restaurants and food businesses.

The funding includes both equity and debt financing, with the $20 million equity portion of the investment being led by two of the biggest Africa-focused funds: TLcom and Partech. Other participating equity investors included VentureSouq, Hack VC, Hustle fund, Kube VC, GFR Fund, Magic Fund, and Kairos Angels who also participated in the previous round.

The company’s $10 million debt fund was raised from local financiers.

The company’s CEO Tunde Kara said the investment will be used to strengthen its operations in Nigeria and Ghana.

“We’re building technology to efficiently move food from the point of production to the point of consumption,” said Kara.

“Everything we build at Vendease — financing, logistics, warehousing, inventory management — is tailored towards ensuring that food flows efficiently from that point of production to the point of consumption.”

Vendease helps empower local food businesses and restaurants in buying supplies and getting it delivered to them on time, but is also helping them access funds needed in purchasing their inventories.

The Covid-19 pandemic, the war in Ukraine, and rising inflation has led to soaring food prices, but investors are confident Vendease have what it takes to thrive in a yet to be fully established Industry on the African continent.

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