Vendease, a Nigerian food supply startup, ended its operations in Ghana in October 2024, a year after entering the market with high hopes and a fresh $30 million Series A round.
Why it matters
Ghana was Vendease’s first major international expansion. Its abrupt exit underscores the challenges African startups face when scaling across borders — from funding shortfalls to tough operational logistics.
Catch up quick:
- Vendease launched in Ghana in 2023, aiming to replicate its B2B food supply marketplace success from Nigeria.
- Alongside its marketplace, the startup rolled out software tools like payments and point-of-sale systems — but adoption lagged.
- Demand soared quickly, with weekly orders surpassing $1 million — but the company could only fulfill about 25% due to capital constraints.
Between the lines
Despite early traction, Vendease couldn’t secure enough funding to meet growing demand in Ghana. Attempts to raise local financing fell through, leading to the company’s withdrawal.
“We recouped the money we invested in Ghana in the first six months,” CEO Tunde Kara told Techpoint Africa. “But we faced roadblocks and couldn’t keep funding the growth.”
Zoom in:
- Vendease initially fulfilled every order, even at a loss, but later focused on high-margin deliveries.
- Its BNPL product — which issued over $72M in loans — saw widespread defaults, forcing legal recoveries.
- Internal restructuring in 2024 included a new CFO, Mohamed Chaudry, who tightened payment policies and trimmed a bloated wage bill.
By the numbers:
- $650K+ wage bill before Chaudry’s arrival
- 20% workforce reduction in 2024
- Repayment rates are now above 95% after shifting to prepaid/short-term credit models
The big picture
Vendease joins a growing list of African eCommerce startups struggling to sustain cross-border operations. Low margins, high logistics costs, and shaky financing ecosystems continue to pose major obstacles.
What’s next
With eCommerce scaling back, Vendease is now betting on its software suite to drive revenue — even if the shift comes with uncertainty.
Bottom line
After rapid growth and bold expansion, Vendease is returning to basics — building sustainably without relying on venture funding.
Source: Techpoint Africa
