A Moroccan agritech startup has successfully raised $7 million in pre-Series A funding to transform the supply chain connecting smallholder farmers with traditional retailers of fruits and vegetables. The investment round was led by prominent venture capital firms, including Al Mada Ventures, Algebra Ventures, E3 Capital, Janngo Capital, and the Dutch Entrepreneurial Development Bank (FMO).
Founded in 2023, the startup aims to address the inefficiencies and challenges within the agricultural sector. By directly linking farmers with retailers and food service providers, the initiative eliminates intermediaries, synchronizing supply and demand to reduce waste, lower costs, and increase profits for all stakeholders.
While the primary focus remains on Morocco, the startup has plans to expand into additional markets by 2026. The fresh capital injection will be used to strengthen operations and solidify the startup’s position in the local market.
Utilizing data from both farmers and retailers, the startup provides valuable insights into harvests, demand patterns, and financing options. This data-driven approach streamlines the supply chain, ensuring a seamless flow of produce from farm to fork.
Since its inception, the startup has collaborated with over 1,000 retailers across North Africa, achieving a gross merchandise volume (GMV) of $1 million. Currently, it delivers more than 1,200 tonnes of produce to customers monthly, maintaining an impressive 85% customer retention rate, with an average of four transactions per retailer weekly.
The startup’s analytics reveal strong customer loyalty, highlighting the value it provides to both farmers and retailers. This loyal customer base is expected to help the startup achieve a positive contribution margin by the fourth quarter of 2024 or the first quarter of 2025.
Looking ahead, the startup plans to double down on its cash-on-delivery model with traditional retailers, fostering closer collaboration with farmers to increase margins and prioritize unit economics. It anticipates generating an annualized top line of $40 million to $50 million by 2026, coinciding with its planned expansion beyond Morocco’s borders.
Morocco’s agricultural sector, contributing 15% to the country’s GDP, presents a promising market for the startup. With a substantial domestic market and a traditional trade sector estimated to generate between $5 billion and $6 billion in revenue annually, the startup is well-positioned to capitalize on the vast opportunities in the Moroccan agri-food industry.
By leveraging technology and data-driven solutions, the startup is set to disrupt the traditional supply chain, empowering smallholder farmers, streamlining logistics, and reducing waste while ensuring a steady supply of fresh produce for retailers and consumers alike.
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