Vendease, a Nigerian food delivery startup, raised $30 million in Series A funding led by Partech Africa and TLcom. The new funding is divided into two forms; $20 million in equity and $10 million in debt.
Vendease began as a middleman/delivery service helping restaurants to buy food materials from suppliers and farms. However, it has since transitioned into delivering food from restaurants to consumers.
The startup had seen the gap in the food delivery sector and stepped in to help its food business customers satisfy customers. Its model involves buying products in bulk, storing them, and then delivering them using third-party logistics companies.
After recently expanding into Ghana, Vendease CEO Tunde Kara said that the funding will help it solidify its presence in Nigerian cities and Ghana and expand into more markets in Africa. The startup is still very much invested in the food-making process as well as its consumption.
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Thus, Vendease takes produce from the farm to where it is prepared and, finally, to its final consumers. It is building a digital architecture to make the process more efficient. It has reduced its delivery time for supplies from 24 to 12 hours.
“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,” Kara told TechCrunch.
The company claims that its customers record about $100 billion in losses yearly due to inefficiency in the food-making process, be it buying supplies, accessing finances, wastage, or running operations.
In 12 months, Vendease says it has helped its customers save $500,000 in waste caused by overstocking, $2 million in procurement costs, and 10,000 person-hours (or more). Also, it claims to have moved 400,000 metric tonnes of food for its over 2,000 customers in the same period.
“Since businesses don’t have access to accurate data, they usually buy what they dont need. We help them to solve that problem in two ways,” its CEO says. “One, because businesses know they can get anything on our platform in 12 hours, they don’t need to stock some of the things they would’ve stored before. Two, they can also track what they bought and know how much is left before they need to buy again.”
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