Vendease adjusts pay structure, seeks new funding amid profitability push

NIGERIA – Restaurant food procurement startup Vendease, backed by Y Combinator, has adjusted its employee pay structure and is seeking new funding, stating it has reached break-even and is close to profitability.

Vendease has introduced a phased salary restoration plan as part of its restructuring efforts, aiming to balance financial sustainability with employee retention.

As of February, all employees received a ₦140,000 (US$90) salary, regardless of their previous earnings. A gradual salary reinstatement will take place in five stages.

From March to May, employees will earn 30% of their previous salaries, contingent on meeting unspecified performance targets.

Wages will then increase to 60% from June to August and 90% from September to November, with full salary restoration anticipated by December, provided the company and employees achieve set performance goals.

To compensate for the reduced pay, the unpaid portion will be converted into equity under the company’s Employee Stock Ownership Plan (ESOP).

Half of these shares will vest over 10 months, while the remainder will take three years to fully vest.

However, employees can only exercise their options at a board-approved fair market value, according to internal agreements.

A Vendease spokesperson confirmed the shift, stating that the company has now reached break-even and is moving toward profitability.

They emphasized that the restructuring aligns with Vendease’s transition from logistics-heavy operations to a technology-driven business model.

“We have reshaped our business to focus on software solutions that enhance operational efficiency rather than handling the logistics ourselves,” the company representative stated.

Following two rounds of layoffs in five months, Vendease’s workforce has shrunk by 44%, leaving around 150 employees.

The company is now relying on internal restructuring, fresh capital, and AI-driven tools to streamline costs and sustain operations.

With this shift, Vendease is focusing on sales, payment solutions, and credit services, while gradually reducing its warehousing and logistics operations.

The startup, which secured US$30 million in a Series A funding round led by Partech Africa and TLcom Capital, said these measures are essential for long-term financial stability.

Founded in 2019 by Tunde Kara, Olumide Fayankin, Gatumi Aliyu, and Wale Oyepeju, Vendease initially aimed to optimize food procurement for African restaurants and food businesses.

By 2022, it reported handling 400,000 metric tons of food, helping over 2,000 businesses cut procurement expenses by US$2 million and reducing wastage-related losses by US$500,000 in its primary market, Nigeria.

As Vendease pivots towards a leaner, software-centric model, its ability to execute this transition successfully will shape its long-term trajectory.

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