Vendease, a Y Combinator-backed food procurement startup operating in six Nigerian cities, has implemented its second round of layoffs in five months.
The announcement on Wednesday is part of a restructuring effort to achieve profitability and extend the company’s financial runway as it seeks to close a Series A extension round.
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Vendease’s workforce reduction
The recent layoffs will affect approximately 120 employees, about 35 percent of the staff. This follows a previous round of layoffs in September 2024, which impacted 86 employees, or 20 per cent of the staff.
A company spokesperson confirmed the layoffs, stating that the move aligns with the startup’s shift toward a more capital-efficient model.
Mohamed Chaudry, Vendease’s Chief Financial Officer, stated that “Restructuring takes time and happens in phases” and that the company is moving toward a “lean team” to improve operational efficiency. In total, Vendease has slashed its workforce by 44 per cent.
Vendease’s response to economic headwinds
Despite raising $72 million since its founding in 2019, Vendease has struggled with macroeconomic headwinds, including naira devaluation and rising inflation, which have significantly increased operational costs.
Like many Nigerian startups, Vendease is grappling with these issues, which have increased operational costs across its supply chain.
While the company claims revenue has grown 600 per cent year over year over the past two years, revenues have likely remained flat in dollar terms, possibly hindering expansion.
The company is also shifting its “Buy Now, Pay Later” (BNPL) offering into a revenue-generating model by incorporating daily interest rates and enhancing operational efficiency by embracing artificial intelligence automation.
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About Vendease
Vendease, a Nigerian business-to-business marketplace, streamlines logistics and procurement by linking suppliers and restaurants.
Founded in 2020, it automates inventory management, payments, and deliveries, reducing inefficiencies in Africa’s food supply chain. Backed by investors like Y Combinator, Vendease helps businesses cut costs and improve operations through technology-driven solutions.
Vendease offers financial services, providing businesses with buy-now-pay-later options to ease cash flow challenges. Its AI-powered platform predicts demand, optimises supply, and minimises food waste. By integrating technology with food procurement, Vendease enhances efficiency, transparency, and profitability for African restaurants, hotels, and other food service providers.