$3.2 M seed funding raised by YC-backed Nigerian agri-tech startup Vendease
Vendease, a Nigerian agri-tech firm supported by Y Combinator, has acquired US $3.2 million in early capital to expand operations and develop its technology.
Vendease, founded in January 2020 by Tunde Kara, Olumide Fayankin, Gatumi Aliyu, and Wale Oyepeju, helps food businesses expand by digitising procurement procedures, storage operations, and transportation, as well as enabling flexible payment solutions.
The company, which was a part of Y Combinator’s Winter 2021 batch earlier this year, has created mobile and online tools that allow food businesses to make orders for food supplies, manage inventory, track spending, and obtain credit. Vendease has created a network of farmers and food manufacturers to ensure that food businesses utilising its platform may benefit from improved margins, high-quality goods, and quick delivery.
Vendease transported roughly 100,000 metric tonnes of food in September, and after obtaining a US $3.2 million seed round, the company now plans to increase its capacity even more. The financing will help Vendease grow its operations and develop out its technology, led by Global Founders Capital with participation from Y Combinator, Hustle Fund, Liquid 2 Ventures, and Soma Cap.
“The rising food inflation coupled with effects of COVID-19 across Africa has positioned Vendease to scale up food systems by digitising end-to-end processes from farm to table. We currently operate out of Lagos, Ibadan, and Abuja, but this funding will act as a buoy for us, as we scale our solution to other cities across the continent,” said the chief executive officer (CEO) Tunde Kara.
The caliber of the team, according to Don Stalter, managing partner of Global Founders Capital, drew his firm to Vendease.
“As a backer of one of Africa’s very first unicorns, Jumia, we’ve seen a great deal of talent in the market – and Tunde and the Vendease team are best in class both in EMEA and globally. Their laser focus and rapid growth are unprecedented, and there’s a massive opportunity ahead,” he said.
