The start of the subsidized Nigerian food purchasing purchases Purpose You changed the staff of employee salaries and strives for a new capital, I learned Techcrunch.
This is after getting rid of it 44 % of the workforce About 120 employees – a month, on the occasion The second round of discounts in jobs in five months. In the latest development, the startup company has now replaced the traditional salaries of employees with a performance -based payment system, completed by the ESOP sharing option plan, according to the internal documents seen by Techcrunch.
Five -year -old startup, which was raised 30 million dollars in the series A series “The restructuring was necessary to move to profitability.
The documents say that the new Vendaase compensation form includes a five -stage salary plan.
In February, all employees received a $ 140,000 salary (about $ 90), regardless of previous wages. From March to May, the company will raise employee wages to 30 % of the previous levels if they can achieve performance goals, although they have not set these goals.
Compensation will increase to 60 % of the previous salaries from June to August and 90 % from September to November, with the expectation that full salaries by December again on the company’s performance goals and employee.
Unpaid parts of salaries will be converted to ESOP share options, with 50 % of ten months and the rest over three years. But only employees can exercise these options in the fair market value approved by the Board of Directors, according to the employee agreement.
The company has confirmed the changes to pushing employees that insist that they are now at a break, even near profitability.
A company spokesman told Techcrunch:
She says the changes aim to encourage employee productivity while the company grows more financially. The spokesman added: “We only spend what we win, which keeps us constantly drawing and focusing on profitability.”
With leaving a little more than 150 employees, Vendaase is betting on the internal restructuring, fresh capital and efficiency that artificial intelligence drives to reduce costs and maintain operations. As the company indicates, this also means focusing more on software -based growth, double sales solutions, payments, and credit market with gradual storage and logistics.
Bet on BNPL to stay standing on his feet
Founded in 2019 by Tunde Kara, Olumide Fayankin, Gatumi Aliyu and Wale Oypeju, Vendease began to simplify the nutritional purchases of African restaurants and food companies.
The startup has claimed that it could eliminate shortcomings in the food supply chain, which cost companies billions of dollars annually. By 2022, it was Transfer 400,000 metric tons of food to more than 2000 customersHe said that saving $ 2 million of purchasing costs and reducing losses related to the target by about $ 500,000 in Nigeria is its main market.
But the past two years have been brutal for Vendease and many Nigerian startups without revenue provided by FX. Since the series A in September 2022, its revenues in Nira have multiplied three times, but the decrease in the sharp value of the currency during the past three years has destroyed these gains in dollars. The inflation increased the increase in operational costs, and the profitability pressure on the intensive business of the capital and people.
One of the main revenue drivers in Vendaase during the past year was Buy Now, Pay Later (BNPL). Traditional lenders often avoid food work due to their fluctuations and fragmentation. But Vendease benefits from his knowledge of the supply chain to guarantee loans across the market, which links financial institutions with food companies.
The company claims that the rate of shortening is less than 1 % over the past two years It issued more than $ 70 million of credit As of September 2024.
When CFO Mohamed Chaudry joined in January 2024, he helped define BNPL as a main path of profitability. However, despite some recent modifications, the credit product alone does not seem sufficient to get the purpose there.
He also began appointing the continuous restructuring to tighten financial controls and expand its cash runway, which, according to the sources, may only last a few other months.
As such, the company is holding talks with current and new investors to collect the bridge tour, and the money you will use to finance technology growth and expansion instead of operating expenses.
Meanwhile, the sources also say that Vendease has explored a potential sale of other players in Horeca (hotels, restaurants, catering) and FMCG sectors.
However, the company goes beyond this and insists that it is the opposite. “It is normal for integration and purchase operations to be dealt with, especially when they are rapidly developed actions that work in a unique space like food,” said a spokesman.
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