A Morroco-based agriculture technology company focused on supplying fresh food to consumers, YoLa Fresh, has today announced it has secured $7 million in a pre-Series A funding round.
The round, which was led by Al Mada Ventures with participation from Algebra Ventures, E3 Capital, Janngo Capital, and FMO, the Dutch entrepreneurial development Bank, will be invested in expanding the startup’s logistics network.
Fresh food supply has proven to be a tedious endeavour across Africa. The challenges include transporting the produce, mostly fresh vegetables and fruits, in good condition, getting them to market and selling them to the right buyers willing to pay the correct prices for them. This challenge is made even more devastating by the presence of middlemen who end up making more money than the farmers themselves while not fully servicing the end consumer.
YoLa Fresh is looking to solve these problems with its innovative platform which connects farmers directly with retailers and food service companies, thus eliminating the middlemen, making the farmers happier with their income and encouraging them to go back to their farms and produce more.
Speaking on the purpose of the funding, the Co-founder and Co-CEO, Larbi Alaoui Belrhiti said the funding would also help the startup improve its technology.
“With this funding, we’ll expand our logistics network, bolster our technology, and empower more farmers to deliver high-quality produce directly to consumers,” Belrhiti said.
The founder also said their vision extends beyond Morocco as they aim to become a leading player in Africa’s agritech revolution, tackling food security challenges and fostering economic growth across the continent. Thus, this $7 million in funding marks a significant milestone on their journey to becoming an African unicorn.
How YoLa Fresh is tackling fresh food supply problems
Founded in 2023 by Youssef Mamou and Larbi Alaoui Belrhiti who both serve as co-CEOs, YoLa Fresh utilizes cutting-edge technology to connect farmers directly with retailers and food service companies. The agritech startup tracks produce on its way from the farm to the retail shop thus ensuring transparency and minimizing waste.
The company says its innovative approach to the fresh food problem translates to higher farmer and retailer incomes, reduced food spoilage, and fresher, more affordable options for consumers.
Speaking on how far the startup has come in a short time and the funding they have been able to attract, Co-CEO, Youssef Mamou says the startup’s business model has propelled it to achieving remarkable traction in its less than a year lifetime.
“We have achieved remarkable traction and demonstrated product-market fit in less than 1 year, reinforcing the effectiveness of our innovative business model, which this funding round recognizes and supports,” he said.
The startup also boasts a solid team at its helm. Its founders, Larbi Alaoui Belrhiti and Youssef Mamou are seasoned entrepreneurs who possess deep experience operating at scale in the region.
Youssef, for instance, brings invaluable experience from his leadership roles at Careem, the leading ride-hailing platform in North Africa, and as head of 212Founders, a prominent Moroccan venture capital investor. Larbi, on the other hand, possesses extensive leadership experience at Jumia, one of Africa’s largest e-commerce players. The founders, in their own ways, give YoLa Fresh an unparalleled edge in navigating Africa’s unique market dynamics.
And this has been clear enough for their investors. Managing Director at Al Mada Ventures, Omar Laalej, expressed his company’s belief in the startup which was why it agreed to back it.
“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 commercialization strategy and expansion,” he said.
Managing Partner at Algebra Ventures, Tarek Assaad, said “We are excited to back Youssef and Larbi, both world-class entrepreneurs who have the skill and passion needed to tackle this large and untapped market opportunity in Morocco. YoLa’s combination of technology and operational capabilities will enable it to create significant efficiencies across the entire farm-to-retail supply chain.”
He noted that the agritech sector is a major contributor to economic growth and employment in the region and stands to gain significantly from tech solutions. As such, the startup is uniquely positioned to become a leader in that transformation in Morocco and beyond. He said that as a relative newcomer to the Moroccan VC space, Algebra Ventures is excited about the upside potential of the market and looks forward to continuing to support Moroccan tech startups.
YoLa Fresh says it draws inspiration from successful fresh produce marketplace models around the globe like Meicai in China, Frubana in Latin America, and Waycool in India which have all demonstrated the potential of this model, attracting significant investment from top-tier VCs.
See also: Food technology startup, Reelfruit unveils 800 metric ton dry fruit factory in Ogun State
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