Home Entrepreneurship Vendease secures $ 3.2 Million to help food businesses buy food supplies in Africa

Vendease secures $ 3.2 Million to help food businesses buy food supplies in Africa

by Blessing Ubani
Vendease secures $ 3.2 Million to help food businesses buy food supplies in Africa

Vendease, an online marketplace that makes procurement for hotels and restaurants in Africa has raised a seed round of $3.2 million. 

Vendease, which was founded barely over eighteen months old has employed extensive quality control measures for the food supplies on its platform and helped businesses save tons of money and human capital. Through Vendease’s technology stack, companies can now analyze what their customers want before making their orders. 

Situated in Nigeria, a country with fluctuation of food prices, Vendease tries to solve the challenges and inefficiencies in Africa’s highly fragmented food sector, starting with Nigeria.

A restaurant or food business can place an order on the platform, the system generates all the possible suppliers that can fulfil it, looks at the best pricing versus quality and assigns that order to the supplier.

Vendease has successfully created a predictive analysis and storage system that help food businesses, farmers and vendor create a predictive analysis and storage system that helps them predict future food prices, store food in advance, and peg their prices for any duration depending on the food category.

According to the Co-founder and CEO, Tunde Kara, we have helped businesses save money, “When we compare market prices to what users buy on our platform, we’ve approximately saved them about $480,000 in the last nine months, cutting a lot of unnecessary expenses from their general costs such as savings that can go into other things in terms of expansion and growth.

Kara says the company hopes to help grow the GDP for the food businesses both on the farmers and vendor side of the marketplace,” he stated.

Last month, the YC-backed company hit an annualized transaction volume of $12.9 million and $1.2 million in annual recurring revenue.

Vendease currently operates in three Nigerian cities: Lagos, Abuja and Ibadan, and will use the funding to expand into other cities and countries before the end of Q1 next year.

Global Founders Capital, San Francisco-based venture capital firm led the seed round. Y Combinator, Hustle Fund, Liquid 2 Ventures, Hack VC and Soma Capital participated, including individual local investors and early backers such as Paga CEO Tayo Oviosu, Remita CEO John Obaro and Magic Fund. 

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