News Summary

Vendease, a Nigerian food procurement startup backed by Y Combinator, has restructured its employee pay system as part of a broader effort to achieve profitability. After laying off 44% of its workforce, the company has introduced a performance-based salary structure supplemented by an Equity Share Option Plan (ESOP). This change is aimed at promoting employee productivity while the startup seeks fresh capital. Vendease plans to restore full salaries by December, contingent on meeting performance goals. The company is focusing on software-driven growth, especially in its sales and payments solutions and credit marketplace, as it phases out warehousing and logistics. Despite financial challenges due to currency depreciation and inflation, Vendease’s BNPL product has been a significant revenue driver, boasting a low default rate. Talks with investors for a bridge round are ongoing, with funds intended for technology growth.