Vendease is an online marketplace that aims at solving the challenges and inefficiencies in Africa’s highly fragmented food sector, starting with Nigeria. The tech start-up allows restaurants and other food businesses to buy supplies straight from manufacturers and farms.
According to TechCrunch, Initially, the company found a sweet spot in a purely decentralized marketplace play connecting suppliers and farms on one side with restaurants and food businesses on another. When a restaurant or food business places an order, the system generates all the possible suppliers that can fulfill it, looks at the best pricing versus quality, and assigns that order to the supplier. According to the company, delivery is made within 24 hours, either by itself or third-party logistics providers.
Vendease currently operates in three Nigerian cities — Lagos, Abuja, and Ibadan, with some of the biggest food brands in the country such as Hard Rock, Krispy Kreme, and Shiro.
Seven months after TechCrunch announced that the company, founded in January 2020, took part in Y Combinator’s winter batch that included nine other African startups, Venndease has raised a seed round of $3.2 million. San Francisco-based venture capital firm Global Founders Capital 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.
Vendease plans on using the funding to expand into other cities and countries before the end of Q1 next year. In addition, the funding allows Vendease to continue to build out its technology stack, secure partnerships with some payment platforms and banks to deepen its financial products, especially buy now, pay later.