Y Nigerian supply startup on the back of a combiner y Seller has changed its employee remuneration structure and is looking for a new capital, Techcrunch learned.
It is after having dismissed 44% of his workforce – approximately 120 employees – the last month, marking his Second round of job cuts in five months. In the latest development, the startup has now replaced the traditional wages of employees with a return -based remuneration system, supplemented by a capital sharing option (ESOP), according to internal documents seen by Techcrunch.
The five -year startup, which raised $ 30 million in its series led by Partch Africa and TLCOM Capital, said that restructuring was necessary to navigate to profitability.
The new Vendease remuneration model includes a five -phase wage recovery plan, according to documents.
In February, all employees received a salary of 140,000 (~ $ 90), whatever the previous remuneration. From March to May, the company will increase employee salaries to 30% of old levels if they reach performance objectives, although it has not specified these objectives, according to documents.
The remuneration will increase to 60% of old wages from June to August and from 90% from September to November, with a full wage catering expected by December again to the company’s performance and employee performance objectives.
The unpaid parts of wages will transform into action options within the framework of ESOP, with 50% acquired more than ten months and the rest over three years. But employees can only exercise these options in a fair value just approved by the board of directors, according to the agreement of the employees.
The company has confirmed the changes to employee remuneration by insisting that it is now at an equal point, even close to profitability.
“Vendease has restructured its activities and operations.
He indicates that changes aim to encourage employee productivity while the company becomes more financially sustainable. “We only spend what we earn, which regularly keeps us at the profitability threshold and profitability,” added the spokesperson.
With just over 150 employees, Vendease is betting on internal restructuring, fresh capital and IA -oriented efficiency to reduce costs and maintain operations. As the company points out, this also means focusing more on software -oriented growth and doubling of its credit and payment and credit market solutions while gradually eliminating warehouse and logistics operations.
Bet on BNPL to stay afloat
Founded in 2019 by Tunde Kara, Olide Fayankin, Gatumi Aliyu and Wale Oyepeju, Vendease has planned to rationalize food supply for African restaurants and food companies.
The startup said that it could eliminate the ineffectiveness of the food supply chain, which costs companies per year billions. By 2022, he had moved 400,000 metric tonnes of food for more than 2,000 customers, he said, saving them $ 2 million in supply costs and reducing losses related to waste of almost $ 500,000 in Nigeria, its main market.
But the last two years have been brutal for the Vendease and numerous Nigerian startups without income labeled by the FX. Since his series A in September 2022, his income in the Naira of Nigeria has tripled, but the strong depreciation of money in the past three years has destroyed these gains in terms of dollars. Inflation has further increased operational costs, which prescribes profitability for the company with a high intensity of capital and people.
One of the main Vendease income engines in the past year was its purchase now, pay later (BNPL). Traditional lenders often avoid food companies because of their volatility and their fragmentation. But Vendease takes advantage of his knowledge on the supply chain to take out loans via its market, which connects financial institutions to food companies.
The company claims a defect rate of less than 1% in the last two years and has has issued more than $ 70 million in credit In September 2024.
When the financial director Mohamed Chaudry joined in January 2024, he helped to identify the BNPL as a key path of profitability. However, despite some recent adjustments, the credit product alone does not seem to be sufficient to be sold there.
His appointment has also triggered the current restructuring to tighten financial checks and extend his cash flow, which, according to sources, can only last a few more months.
As such, the company is in talks with existing and new investors to increase a bridge tour, the money it will use to finance the growth and expansion of technology rather than operational expenses.
Meanwhile, sources also say that Vendease has explored a potential sale to other players from the Horeca sectors (hotels, restaurants and restaurants) and FMCG.
The company, however, disputes this and insists on the fact that it is the opposite. “It is normal to be approached for mergers and acquisitions, especially when you are a fast growing business operating in a unique space like food.
