Vendease Secures $30M in Debt and Equity to Help Hotels and Restaurants Buy Food in Africa
The $20m Series A round was co-led by TLcom and Partech in a rare joint investment by two of the largest Africa-focused funds. Following their investments, Andreata Muforo (Partner at TLcom) and Cyril Collon (General Partner at Partech) will join Vendease’s board of directors as new directors.
The round also included VentureSouq, Hustle fund, Hack VC, GFR Fund, Kube VC, Magic Fund and Kairos Angels, which reinvested after participating in the previous round. Vendease raised $10 million of debt from the local financial market.
Commenting on the funding, Tunde Kara, CEO and co-founder of Vendease, said the company would use the proceeds to consolidate its growth and operations in Nigeria and Ghana and to support its expansion across the continent.
“Our mission is to enable an efficient flow of food across Africa, from point of production to consumption. We want to transform the way the entire industry works and remove the bottlenecks that are holding back the growth of restaurants and food businesses,” he added.
Launched in January 2020, Vendease’s digital sourcing engine makes it easier for restaurants in 8 cities across Nigeria and Ghana to purchase groceries at rates significantly cheaper than open market prices, with guaranteed delivery in 12 hours. Over the past 12 months, the company has moved over 400,000 metric tons of food through its platform, helping its users save over $2,000,000 in procurement costs and over 10,000 hours of labor. Its data also helped them reduce waste due to overstocking by an additional $485,000.
The company said it saw the number of users on its platform triple and revenue increase fivefold in the past 12 months. “Users have also accessed over $12 million in inventory through its integrated financing product,” he added.
Restaurant owners only need to download the app, complete the registration process with a few clicks, and they will be able to access all the benefits of the Vendease platform. They can also access working capital through Vendease’s Buy-Now-Pay-Later offering to maximize their growth opportunities.