BendersThe online marketplace, where restaurants and other food companies can buy supplies directly from manufacturers and farms, has raised $ 3.2 million in seed rounds, the company confirmed to TechCrunch.
The news comes seven months after TechCrunch announced the company, which was founded in January 2020. Participated in Y Combinator’s winter batch This included nine other African startups.
Global Founders Capital, a San Francisco-based venture capital firm, led the seed round. Joined by Y Combinator, Hustle Fund, Liquid 2 Ventures, Hack VC and Soma Capital, with individual local investors and early backers such as Paga CEO Tayo Oviosu, Remita CEO John Obaro and Magic Fund. I participated.
Vendease seeks to solve Africa’s challenges and inefficiencies very A fragmented food sector, including Nigeria. Initially, The company found a sweet spot in purely Decentralized marketplace play connects one supplier and farm with the other restaurant and food business..
When a restaurant or food company places an order, the system produces all possible suppliers that can meet it, considers the best pricing for quality, and assigns that order to the supplier.According to the company, delivery Is made Within 24 hours, either alone or by a third party logistics provider.
Still, the company knew that these businesses needed higher quality operational support. Some complained about delivery times and the quality of the groceries, while others did not have the advanced manipulations to handle them.
Co-founder and CEO Tandekara Tell TechCrunch that this has helped Vendease build a set of stacks (logistics, storage, payments, inventory control, built-in finance) to control the movement of food supplies from one production point to the end of consumption. increase.
“That is, when we say we are building an operating system for food supply, this is what we mean,” said Kara, the founder of the company. Olmide Fayankin, Gatumi Arille, When Wale Oe Peju Olumide Fayankin, Gatumi Aliyu, Wale Oyepeju.
Vendease also states that it employs a wide range of quality control measures for food supplies on the platform at the time of delivery or receipt to the warehouse. The platform also has the option of allowing the food industry to receive free supplies for unsatisfactory orders...
From the launch of Vendease to the present, the industry in which Vendease has entered has kept one thing, the fluctuation of food prices in Nigeria...
With one of the highest inflation rates in the world, the country saw the price of foods such as beans Grow over 70% From July 2020 to July 2021.. this report Domestic food costs are said to have increased by 19.57% in September 2021 compared to the same month last year...
These are some of the unexpected but combat-ready issues that agricultural and food technology start-ups must address to scale up... In the case of Vendease, Kara said he created a predictive analytics and storage system to help companies predict future food prices, store food in advance, and peg prices for any period depending on the food category. I am.
According to the CEO, this process has saved companies on the platform huge costs and human capital.
“Comparing market prices to what users buy on the platform, we’ve saved about $ 480,000 in the last nine months, saving a lot of unnecessary costs from common costs. This leads to other things. There is a possibility. in terms of Expansion and growth.
According to Kara, the company hopes to grow ten times this number in the next 12-18 months. “”actively“In our little way, we are helping to grow the GDP of the food business on both the farmer and vendor sides of the market,” he continued.
in terms of Human capital, Kara says Vendease’s business saved about 5,000 man-hours.. Vendease moved 100,000 metric tons of food, Kara added. For startups over 18 months old, moving that amount of food is a remarkable feat.
By moving this quantity and combining Vendease’s technology stack, the company is now able to analyze what customers want before ordering. That’s why the company currently offers warehousing and logistics services.
Last month, the YC-backed company reached $ 12.9 million in annual turnover and $ 1.2 million in annual recurring revenue... Kara doesn’t share revenue figures, but Vendease’s revenue has increased 17-fold since last year, he said...
On the platform financing side, over 1,000 companies have access to over $ 3 million in supply chain financing. So far..
Since Twiga was launched in Kenya seven years ago, there have been few platforms to digitize the food supply chain of restaurants and food businesses across the African continent (although the models are slightly different).
Now that Vendease is in conflict, Vendease wants to establish himself as a leader in the next pack. New players such as Kenya’s Kibanda Top Up. According to Kara, the prerequisites for this are Vendease’s knowledge of market execution and operation, as well as data on the food business. He believes they give the company an edge over other platforms.
“But there is no competition because the winner accepts all situations. We see it as a verification of the work we are doing,” he said.
Vendease currently operates in three Nigerian cities, Lagos, Abuja and Ibadan, and has some of the country’s largest food brands, including Hard Rock, Krispy Kreme and Shiro.
According to Kara, the company plans to use the funds to expand into other cities and countries by the end of the first quarter of next year... In addition, with this funding, Vendease can continue to: Build a technology stack, secure partnerships with some payment platforms and banks to deepen your financial products, especially buy now and pay later.
In a statement, Global Founders Capital’s managing partner said: Both in EMEA and globally. Their laser focus and rapid growth Unprecedented, And there is a big chance from now on. “
Vendease gets $3.2M to help hotels and restaurants buy food supplies in Africa – TechCrunch Source link Vendease gets $3.2M to help hotels and restaurants buy food supplies in Africa – TechCrunch