Y combiner-backed nigerian food purchase startup Vendosia Changed its employee pay structure and is looking for fresh capital, Techcrunch has learned.
This is after the departure 44% of its workforce – about 120 employees – the month, marking it Second round of jobs in five months. In the latest development, the startup has now replaced employees’ traditional salaries with an performance-based wage system, completed by Equity Share Option Plan (ESOP), according to internal documents seen by Techcrunch.
The five -year starting that has risen $ 30 million in its A -Circle Series Led by Partach Africa and TLCOM Capital, said the restructuring is needed to navigate to profit.
Vendease’s new compensation model includes a five-phase pay recovery, the documents say.
In February, all employees received ₦ 140,000 (~ $ 90) a salary, regardless of a previous salary. From March to May, the company will raise employees’ salary to 30% of former levels if they meet accomplishment goals, although it has not specified these goals, the documents say.
Compensation will increase to 60% of former salaries from June to August and 90% from September to November, with a full salary expected from December again satisfied with companies and employed actions.
The unpaid portions of wages will be converted into stock options under the ESOP, with 50% dressing over ten months and the rest for three years. But employees can only exercise these options at board approved fair market value, according to the employed agreement.
The company confirmed the changes to an employee wage insisting that it is now in a break even a point, even close to profit.
“Vendease redesigned both of his companies and operations.
It says the changes are intended to encourage productivity of employees as the company is growing more financially sustainable. “We just spend what we win, which keeps us constantly at gunfire and focused on profitableness,” the spokesman added.
With just over 150 employees left, Vendease is betting on internal restructuring, fresh capital and AI-driven efficiency to cut costs and continue operations. As the company points out, this also means focusing more on program-driven growth and doubling its sales and payment solutions and credit market while gradually removing warehouse and logistics operations.
Betting on BNPL to stay float
Founded in 2019 by Tunde Kara, Olumide Fayankin, Gatumi Aliyu, and Wale Oyepeju, sell began to rationalize food for African restaurants and food companies.
The starting claimed it could remove inefficiencies in the food chain, which cost billions of billions annually. By 2022, it had Moved 400,000 metric tons of food for more than 2,000 customersIt said, saving them $ 2 million in purchase costs and cutting waste relationships with nearly $ 500,000 in Nigeria, its main market.
But the last two years have been brutal for Vendease and many Nigerian companies without FX-named revenue. Since its series A in September 2022, its income in Naira de Nigeria has triple, but the coin’s sharp depreciation in the last three years has wiped out those gains in dollar terms. Inflation further increased operational costs, squeezing profitable for capital and people-intensive trade.
One of the main revenue drivers of Vendease within last year was its purchase now, pay later (BNPL) product. Traditional lenders often avoid food companies because of their volatility and fragmentation. But Vendease uses his knowledge of a supply chain to undergo loans with its market, which links financial institutions with food companies.
The company claims a default rate of less than 1% over the last two years and has issued more than $ 70 million in credit From September 2024.
When CFO Mohamed Chaudry joined in January 2024, he helped identify BNPL as a key path to profit. However, despite some recent retorts, the credit product alone does not seem to be enough to win there.
His appointment also triggered the ongoing restructuring to tighten financial controls and extend its cash run, which according to sources may only last a few more months.
As such, the company negotiates with existing and new investors to earn a bridge round, money it will use to fund technology growth and expansion instead of operating expenses.
Meanwhile, sources also say that Salease has explored a possible sale to other players in the hourly (hotels, restaurants and restaurant) and FMCG sectors.
The company, however, disputes about this and insists that it is to the Revés. “It’s normal to approach M&A, especially when you are a rapidly growing company operating in a unique space like food.
