Nigeria’s food-tech startup ecosystem is facing another reality check after FoodCourt suspended operations.
The company, which operates a technology-enabled cloud kitchen model that prepares meals from centralised kitchens for delivery, halted operations after months of financial strain marked by unpaid salaries, outstanding vendor obligations and disruptions to its business.
This highlights the mounting financial and operational pressures confronting venture-backed startups as funding remains tight and operating costs continue to rise.
According to TechCabal, the company’s challenges became public in March when employees reportedly embarked on a strike over unpaid wages, affecting service delivery.
By April, FoodCourt had shut its remaining kitchen as it struggled to meet its financial commitments. The startup is now seeking fresh capital while working on a restructuring plan aimed at settling outstanding debts and resuming operations.
