Y-combinator nigerian startup food supply Supplies TechCrunch learned that he modified the structure of employees’ salaries and was looking for fresh capital.
It is after folding 44% workforce – about 120 employees – the remaining month, marking him The second round of work of jobs in five months. In the latest study, the startup has now replaced traditional worker salaries with a results -based remuneration system, supplemented with the motion of motion options (ESOP), in accordance with internal documents observed by TechCrunch.
A five -year startup, which collected $ 30 million in the A series of series A under the leadership of Partech Africa and TLCom Capital, said that restructuring is obligatory for navigation for profitability.
Documents say that the latest Vendease compensation model includes a five -train salary recovery plan.
In February, all employees received a salary of 140,000 ₦ (~ 90 USD), regardless of earlier salaries. Documents say that from March to May the company will increase employees’ salary to 30% of previous levels if they reach performance goals, although it has not specified these goals.
Compensation will increase to 60% of previous remuneration from June to August and 90% from September to November, and full restoration of remuneration was expected again in December dependent on the performance of the company and employees’ performance.
Unpaid parts of the remuneration will transform into the Options of Action under ESOP, from 50% are purchased for over ten months, and the rest in three years. But employees can only perform these options with fair market value approved by the boards, in accordance with the worker’s contract.
The company confirmed the changes in the worker’s salaries, insisting that it is now at the break point, even much like profitability.
“Vendease has restructured each its activities and activities.
He says that the changes are intended to encourage employees’ performance, while the company becomes more financially balanced. “We only spend what we earn, which keeps us consistently on the threshold and focuses on profitability,” the spokesman added.
After just over 150 employees, Vendease bet on internal restructuring, fresh capital and efficiency based on AI to cut back costs and maintain surgery. As the company notes, this also means focusing more on software development and doubles sales and payment solutions, and the credit market, while step by step withdrawing storage and logistics operations.
BNPL betting to remain on the surface
Founded in 2019 by Tunde Kara, Olumide Fayankin, Gatumi Aliyu and Wale Oyeeteju, Vendase decided to enhance food orders for African restaurants and food corporations.
The startup claimed that it could eliminate inefficiency in the food supply chain, which cost billions a 12 months. He said that by 2022 she moved 400,000 tons of food metric for over 2,000 customers, saving them $ 2 million of order costs and reducing losses related to waste by almost USD 500,000 in Nigeria, its principal market.
But the last two years were brutal for Vendase and many Nigerian startups without revenues with FX denominated. Since series A in September 2022, his revenues in Nigeria Naira have been tripled, but acute currency cushioning has destroyed these profits in dollars over the past three years. Inflation increased operating costs much more, squeezing profitability for capital activities and people.
One of the principal tax aspects of Vendase over the past 12 months was the purchase product, Pay later (BNPP). Traditional lenders often avoid food corporations on account of their variability and fragmentation. But Vendease uses his knowledge about the supply chain to insure loans through its market, which connects financial institutions with food corporations.
The company claims that in the last two years the default rate below 1% Spent over 70 million dollars of the loan From September 2024
When CFO Mohamed Chaudry joined January 2024, he helped discover BNPL as a key path to profitability. However, despite some of the last corrections, the credit product itself is not enough to get sales.
His meeting also resulted in ongoing restructuring to tighten financial controls and extend the runway, which in keeping with sources can last only a few months.
As such, the company talks to existing and latest investors to gather the bridge round, money that it uses to finance the growth and expansion of technology, not operating expenses.
Meanwhile, sources also say that Vendease has examined potential sales to other players in Horeca sectors (hotels, restaurants and catering) and FMCG.
The company, nonetheless, questions this and insists that it is the other way around. “It is normal that you simply approach fusion and acquisitions, especially when you are a rapidly developing business in a unique space, resembling food.