In October 2024, Nigerian food supply and logistics startup Vendease officially ceased operations in Ghana, just a year after entering the market. Despite high marketplace demand, the company cited funding limitations and structural challenges as reasons for the withdrawal.

Backed by a $30 million Series A round in 2022, Vendease expanded into Ghana to replicate its success in Nigeria, where it operates a digital food supply chain platform tailored for restaurants and food service businesses. The move was accompanied by efforts to deploy complementary regulatory technology solutions, including payment infrastructure, compliance-driven point-of-sale tools, and inventory automation designed to streamline operations and enhance transparency.

While Vendease’s marketplace quickly gained traction in Ghana—with weekly demand exceeding $1 million—the company reportedly struggled to meet more than 25% of that demand due to insufficient local funding. Attempts to secure financing from Ghanaian institutions proved unsuccessful, limiting scalability and compliance resource deployment.

CEO and Co-founder Tunde Kara confirmed that although the company recouped its initial investment in under six months, it could not sustain operations due to bottlenecks in financing and operational inefficiencies. “The challenge wasn’t product-market fit,” Kara explained. “It was funding growth in an environment that demanded scale.”

As with many African eCommerce ventures, profit margins remained thin, and Vendease was forced to shift its fulfillment strategy from serving all orders to focusing only on profitable ones. The company’s buy-now-pay-later (BNPL) program—once a key growth driver—issued over $72 million in loans but was eventually impacted by high default rates and increasing recovery efforts, revealing a need for stronger risk assessment and compliance management systems.

The appointment of Mohamed Chaudry as Chief Financial Officer in 2024 marked a turning point. Under his leadership, Vendease implemented stricter payment terms, handling only prepaid orders or those with short payment cycles. This shift reportedly increased repayment rates to over 95%, signaling stronger internal controls and regulatory compliance enforcement.

To further drive financial sustainability, Vendease reduced its ₦1 billion wage bill by trimming its workforce by 20% and restructuring its compensation model. Sources claim that senior hires were previously overpaid, a trend Chaudry reversed as part of broader compliance and governance reforms.

Despite operational cutbacks, Vendease remains committed to regaining profitability. The company is now pivoting toward a software-first strategy, focusing on tools that power supply chain efficiency and financial compliance for food businesses. Kara admits that the transition has been difficult without additional venture funding but believes it is necessary for long-term sustainability.

“Is this going to be successful? I guess we’re in the business of trying things out and seeing if they work,” Kara stated, reflecting the startup’s willingness to adapt its model amid changing market dynamics.

Vendease’s Ghana exit highlights the broader challenges facing African startups—where demand may be strong, but regulatory frameworks, funding limitations, and compliance risks often determine long-term success. The startup now seeks to return to its core principle of spending only what it earns, a model that once made it profitable before its Series A.