Vendease, a Nigerian agri-tech startup backed by Y Combinator, has raised US$3.2 million in seed funding 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 digitizing procurement processes, storage operations, and transportation, as well as enabling flexible payment solutions.
The startup, which was a part of Y Combinator’s Winter 2021 cohort earlier this year, has developed mobile and web apps that help food businesses make orders for food supplies, manage inventory, track expenses, and obtain credit. Vendease has created a network of farmers and food manufacturers to ensure that food businesses using its platform receive better margins, high-quality produce, and quick delivery.
Vendease delivered approximately 100,000 metric tons of food in September, and it now plans to expand its capacity after securing a $3.2 million seed round. The investment, which was led by Global Founders Capital and included Y Combinator, Hustle Fund, Liquid 2 Ventures, and Soma Cap, will help Vendease expand its operations and technology.
“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 chief executive officer (CEO) Tunde Kara.
The quality 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.