Vendease, an online marketplace for African food businesses, recently raised $30 million in an equity and debt financing round.
The $30 million round was split between $20 million in equity and $10 million in debt, co-led by TLcom and Partech, in a rare joint investment by two of the biggest funds focused on Africa.
The round also included Hack VC, Kube VC, VentureSouq, Hustle Fund, GFR Fund, Magic Fund and Kairos Angels, which reinvested after participating in the previous round. The $10 million seed round was raised from the local financial market.
According to Vendease, the newly raised funding round will be used to deepen its operations in eight cities across Nigeria and Ghana, while noting that the startup is currently building technology to aid in the efficient movement of food from point of production to point of consumption
Vendease CEO Tunde Kara, while commenting on the recently raised funds, said: “We are developing technology to efficiently move food from the point of production to the point of consumption.
“Everything we build at Vendease; financing, logistics, warehousing, inventory management, is designed to ensure that food flows efficiently from that point of production to the point of consumption.
Vendease enables African restaurants and food businesses to purchase products, access financial services and secure their operations.
According to the company, most customers, including restaurants and food businesses, hospitals, hotels and schools, suffer losses of $100 billion annually due to several factors.
These factors range from from unreliable and wasteful supplies to limited data to make informed purchasing decisions to little or no capital to fund purchases.
Vendease, described as a series of stacks, is designed to reduce waste and help food businesses thrive.
The platform says it has transported around 400,000 metric tons of food for its more than 2,000 customers over the past 12 months and helped them save around $2 million in purchases and over 10,000 hours of labor.
Vendease CEO Kara also revealed that his company saved customers nearly $500,000 in losses due to overstocking.