Nigerian food procurement startup Vendease is transitioning to a performance-based compensation model following the layoff of 44% of its workforce—approximately 120 employees—according to TechCrunch. Instead of fixed salaries, employees will now earn based on performance, with an added Equity Share Option Plan (ESOP) as an incentive. The move is aimed at sustaining the business and steering it toward profitability.
The new pay structure is being implemented in phases. In February, all employees received a flat ₦140,000 (~$90), regardless of previous salaries. From March to May, they can earn up to 30% of their former salaries if they meet performance targets—though these targets have yet to be clearly defined. By December, full salaries are expected to be reinstated, provided performance goals are achieved. Meanwhile, unpaid salary portions will be converted into company shares, redeemable under specific conditions.
Vendease maintains that this shift is about optimizing efficiency and ensuring financial sustainability. “We only spend what we earn,” a company spokesperson stated, emphasizing that the startup has now reached break-even and is prioritizing tech investments over costly operations. With its workforce reduced to just over 150 employees, Vendease is doubling down on sales and payments solutions while gradually phasing out warehousing and logistics.
A key focus for the company moving forward is its Buy Now, Pay Later (BNPL) product. Traditional lenders often avoid food businesses due to their volatility, but Vendease leverages its supply chain expertise to extend loans, boasting a default rate of under 1%. Since 2024, the company has issued over $70 million in credit. However, while BNPL has driven revenue, it hasn’t been enough to fully stabilize the business.
To fuel growth, Vendease is now exploring new funding options, including a bridge round to support tech expansion. There are also murmurs of potential acquisition talks, though the company insists it is the one receiving interest, not actively seeking a buyer. “Yes, people have shown interest, but we’re focused on scaling, not selling,” a spokesperson clarified.