YoLa Fresh secures $7 million funding to transform smallholder farmers’ supply chain

Moroccan agritech startup YoLa Fresh has secured $7 million in pre-Series A funding to transform the supply chain for smallholder farmers and traditional retailers of fruits and vegetables. The investment round was led by Al Mada Ventures, with contributions from Algebra Ventures, E3 Capital, Janngo Capital, and the Dutch Entrepreneurial Development Bank (FMO).

Founded in 2023 by Youssef Mamou and Larbi Alaoui Belrhiti, YoLa Fresh seeks to tackle the inefficiencies and supply chain challenges in the agricultural sector. By directly connecting farmers with retailers and food service providers, the startup eliminates intermediaries, synchronizing supply and demand to reduce waste, lower costs, and increase profits for all parties involved.

While YoLa Fresh aims to expand into new markets, its current focus remains on Morocco. The fresh capital will be used to enhance operations and strengthen its foothold in the local market, with plans to extend beyond Morocco by 2026.

YoLa Fresh employs a data-driven approach, gathering insights from both farmers and retailers to optimize harvests, demand patterns, and financing options. This strategy allows the startup to streamline the supply chain, ensuring a smooth flow of produce from farm to table.

Since its launch, YoLa Fresh has partnered with over 1,000 retailers across North Africa, achieving a gross merchandise volume (GMV) of $1 million. The company currently delivers over 1,200 tonnes of produce monthly, with an impressive 85% customer retention rate and an average of four transactions per retailer each week.

The startup’s analytics highlight strong customer loyalty, underscoring the value it offers to farmers and retailers. This loyalty is expected to help YoLa Fresh reach a positive contribution margin by late 2024 or early 2025.

Looking ahead, YoLa Fresh plans to enhance its cash-on-delivery model with traditional retailers, fostering closer collaboration with farmers to increase margins and prioritize unit economics. The startup aims to generate an annualized revenue of $40 million to $50 million by 2026, aligning with its expansion plans beyond Morocco.

Morocco’s agricultural sector, which accounts for 15% of the country’s GDP, offers a promising market for YoLa Fresh. With a robust domestic market and a traditional trade sector generating between $5 billion and $6 billion annually, the startup is well-positioned to tap into the significant opportunities in the Moroccan agri-food industry.

Through leveraging technology and data-driven solutions, YoLa Fresh 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.

Picture Cred: Tech In Africa