Vendease Leaves Ghana Despite Soaring Market Demand

Despite attracting strong market interest in Ghana, Nigerian-founded food supply startup Vendease pulled out of the country in October 2024. The company entered the Ghanaian market in 2023, a year after securing $30 million in Series A funding. Initially, it aimed to replicate its Nigerian model — a digital marketplace connecting restaurants and food vendors with bulk suppliers.

Although demand soared, the company couldn’t keep up. Weekly orders reportedly exceeded $1 million, yet Vendease could only service a fraction. According to sources who spoke to Techpoint Africa, attempts to secure additional funding locally proved unsuccessful.

Vendease CEO and co-founder Tunde Kara confirmed the exit, stating the business had recovered its investment in Ghana within six months. Still, growth soon became unsustainable. “We moved into Ghana because there was a lot of potential, especially when we raised our Series A,” he said. “We recouped the money we invested in Ghana in the first six months of launch… but it wasn’t because our products were not in demand.”

Funding Struggles Force Tough Choices

Like many African e-commerce ventures, Vendease battled with low profit margins. Initially, it fulfilled every order, even when profitability was uncertain. But as pressure mounted, the company pivoted towards servicing only high-return deliveries. Its buy-now-pay-later feature — which issued over $72 million in credit — also faced turbulence. A wave of defaults followed, forcing Vendease to turn to legal actions to recover payments.

The appointment of Mohamed Chaudry as Chief Financial Officer in 2024 was a turning point. Under his leadership, Vendease changed its payment model, only processing fully-paid orders or those with a one-week payment window. This shift improved repayment rates, pushing them above 95%.

He also took measures to slash operational costs. The startup had been spending over ₦1 billion on salaries, and in 2024, it trimmed 20% of its workforce. Insider reports suggested that some senior executives had been earning more than market standards. This restructuring included revising salaries downward in a bid to sustain the business. While the move triggered a few resignations, Kara claimed several employees chose to stay on, trusting in the company’s vision.

Now, Vendease is shifting gears. As it shrinks its physical operations, the startup is doubling down on software tools, including payment infrastructure and point-of-sale systems. These digital products, though initially slow to gain traction, are now at the centre of its long-term growth plan.

“Is this going to be successful? I guess we’re in the business of trying things out and seeing if they work,” Kara remarked, admitting that the pivot has been far from easy without fresh venture capital.

With profitability achieved before its 2022 funding round, the startup is hoping to return to financial discipline. The new plan? Spend only what it earns.

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