Moroccan Agri-Tech Company Receives $7 Million Pre-series A For Transparent and Sustainable Food Supply
YoLa Fresh, an innovative Moroccan agri-tech startup has taken giant strides towards accelerating its expansion in its home base. It has successfully raised up to $7 million in a pre-Series A funding round to fuel its expansion.
This $7 million pre-Series A funding saw participation from Algebra Ventures, E3 Capital, Janngo Capital and FMo, the Dutch entrepreneurial development bank. Al Mada Ventures stood at the head of this funding round.
“We have achieved remarkable traction and demonstrated product-market fit in less than one year, reinforcing the effectiveness of our innovative business model, which this funding round recognises and supports,” said Youssef Mamou, co-CEO of YoLa Fresh.
“With this funding, we’ll expand our logistics network, bolster our technology, and empower more farmers to deliver high-quality produce directly to consumers,” said Larbi Alaoui Belrhiti, co-CEO of YoLa Fresh.
“As the agricultural sector continues its transition to digital supply chain technologies, we believe that Yola Fresh is well placed to offer real added value to its customers, while having a positive impact on the entire ecosystem. We are delighted to support the company’s commercialisation strategy and expansion,” said Omar Laalej, managing director at Al Mada Ventures.
YoLa Fresh was founded by Larbi Alaoui Berlhiti and Youssef Mamou. The agri-tech startup has established a vast and effective network that directly connects farmers with food service providers and retailers.
They’ve partnered with over 1,000 retailers across North Africa and boast a monthly gross merchandise volume (GMV) of $1 million.
The company reportedly delivers more than 1,200 tonnes of produce monthly and enjoys an impressive 85% customer retention rate, with retailers averaging four transactions per week. YoLa Fresh’s strong customer loyalty is a key indicator of future success. The startup anticipates achieving a positive contribution margin by the end of 2024 or early 2025.
They plan to focus on cash-on-delivery options with traditional retailers, collaborate with farmers to improve margins, and prioritize unit economics for long-term viability.
With an annualized revenue target of $40-50 million by 2026, YoLa Fresh has its sights set on expansion beyond Morocco’s borders in the same year.
By efficiently deploying its state-of-the-art technology, the company makes sure of transparency in its dealings. It also aims to reduce waste by tracking produce from farm to retail. YoLa Fresh remains committed to creating a transparent and sustainable fresh food supply network.
YoLa Fresh seeks to extend its reach beyond the frontiers of Morocco. With this, it would be able to position itself as a major player in Africa’s agri-tech sector and also be in a great position to tackle food security issues, while promoting economic development across the continent.
The agricultural sector contributes a significant 15% to Morocco’s GDP, making it a prime market for the company’s services.
The substantial domestic market, with its traditional trade sector generating an estimated $5-6 billion annually, presents a lucrative opportunity for YoLa Fresh to revolutionize the path of food, from farm to table in Morocco.
