On Tuesday, March 25, Vendease, a Nigerian food procurement startup, revealed a major shift in its employee compensation and business strategy aimed at achieving financial sustainability.
The company has implemented a new performance-based pay system, slashing all staff salaries to ₦140,000 (~$90) with the promise of restoring wages based on performance targets.
As part of the company’s five-phase salary recovery plan, Vendease has outlined a gradual increase in pay over the next year, depending on the company’s and employees’ success in meeting specific goals. The steps are as follows:
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February 2025: A flat salary of ₦140,000 (~$90) for all employees, regardless of previous pay.
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March to May 2025: Salaries will rise to 30% of their previous levels, based on performance.
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June to August 2025: Compensation will increase to 60% of former salaries.
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September to November 2025: Employees will receive 90% of their previous salaries.
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December 2025: Full salary restoration is expected, contingent on hitting targets.
In addition to the salary changes, Vendease is offering an Equity Share Option Plan (ESOP), where the unpaid portion of salaries will be converted into shares. Employees can exercise these options after a board-approved valuation, with 50% vesting over 10 months and the remaining 50% over three years.
These changes come after a significant reduction in workforce, with around 120 employees—nearly 44% of the team—being laid off in February 2025, marking the second round of layoffs in just five months. Vendease co-founders Tunde Kara, Olumide Fayankin, Gatumi Aliyu, and Wale Oyepeju, who founded the company in 2019, had initially aimed to revolutionize food procurement for African restaurants and food businesses.
While Vendease achieved substantial success, including moving 400,000 metric tonnes of food for over 2,000 customers in 2022, the company faced financial strain due to currency depreciation and inflation, which raised operational costs.
Now, the company is focusing on its software solutions, particularly in sales, payments, and its credit marketplace, while phasing out its warehousing and logistics operations to improve profitability. A spokesperson emphasized that Vendease is focusing on tech-driven operations and AI-powered efficiency to cut costs and push towards profitability, stating, “Vendease is consistently at break-even and focused on profitability.”
With a smaller team of just over 150 employees, the company is betting that restructuring, new capital, and an emphasis on software will help steer it toward long-term success. However, it’s unclear whether these decisions were made with employee input or if they were implemented unilaterally.
As Vendease works to restructure and streamline its operations, it hopes to see continued growth and sustainability in the coming months.
