YoLa Fresh, a Moroccan agritech startup dedicated to directly connecting smallholder farmers with traditional retailers of fruits and vegetables, has secured $7 million in pre-Series A funding. This funding round was led by Al Mada Ventures and saw participation from Algebra Ventures, E3 Capital, Janngo Capital, and the Dutch Entrepreneurial Development Bank (FMO).
Launched in 2023 by Youssef Mamou and Larbi Alaoui Belrhiti, YoLa Fresh aims to address supply chain inefficiencies by eliminating middlemen and directly linking farmers with retailers and food service providers. This approach synchronizes supply and demand, reducing waste, lowering costs, and increasing profits for farmers.
Currently focused on Morocco, YoLa Fresh has ambitious plans to expand into additional markets by 2026. The startup uses data from both farmers and retailers to provide valuable insights into harvests and financing options, enhancing the efficiency of the food supply chain.
Since its inception, YoLa Fresh has collaborated with over 1,000 retailers throughout North Africa, achieving a gross merchandise volume (GMV) of $1 million. The company delivers more than 1,200 tonnes of produce monthly and boasts an impressive customer retention rate of 85%, with retailers averaging four transactions per week.
The startup’s analytics indicate strong customer loyalty, positioning it to achieve a positive contribution margin by late 2024 or early 2025. YoLa Fresh plans to enhance its cash-on-delivery services for traditional retailers, work closely with farmers to improve margins, and focus on unit economics.
Looking ahead, YoLa Fresh aims to generate an annualized revenue of $40 million to $50 million by 2026, coinciding with its planned expansion beyond Morocco. With 15% of Morocco’s GDP derived from agriculture and a traditional trade sector generating an estimated $5 billion to $6 billion annually, the market is ripe for YoLa Fresh’s innovative solutions.
This funding round marks a significant step for YoLa Fresh as it continues to revolutionize the agritech space in Morocco and prepare for future growth in new markets.
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