Morocco’s Agritech Startup YoLa Fresh Raises $7 Million to Expand Operations

Rabat – YoLa Fresh, a Moroccan agtech startup, has secured $7 million in pre-Series A funding to streamline the fresh produce supply chain by directly connecting smallholder farmers with traditional retailers.

The startup says that it will channel the investment towards addressing the significant challenges faced by the agricultural sector in Morocco and other emerging markets, such as environmental and labor issues, logistical problems, food waste, and poor demand-supply synchronization.

Launched in early 2023 by co-founders and co-CEOs Youssef Mamou and Larbi Alaoui Belrhiti, YoLa Fresh has quickly gained traction, working with over 1,000 retailers and achieving up to $1 million in monthly gross merchandise volume (GMV).

Drawing inspiration from similar successful models in other countries, such as Frubana in Latin America and Meicai in China, YoLa Fresh aims to digitize and streamline Morocco’s fragmented agricultural supply chain, the startup said in a statement.

“I come from an agricultural family,” said Mamou, who joined Alaoui in building YoLa Fresh after the ex-Jumia Morocco CEO approached him with the idea. “It made perfect sense to me to build something impactful that could be internationalized, exported, and launched in different countries.”

The startup’s platform connects farmers directly with retailers, reducing the need for intermediaries and helping to synchronize supply and demand more efficiently.

YoLa Fresh says that its approach not only improves financial outcomes for farmers and retailers but also reduces food waste significantly. By tracking produce from farm to retail and offering next-day delivery, the startup ensures better quality produce at competitive prices.

“Our solution offers farmers the convenience of placing their orders by midnight for delivery the next day,” said Mamou. “We guarantee better quality produce at the same price as the wholesale market, with our wastage rate around 6-7%, which we aim to decrease to 3% by 2026.”

YoLa Fresh currently moves over 1,200 tons of produce monthly, servicing fruit and vegetable sellers as well as mom-and-pop shops.

With an 85% customer retention rate and an average of four transactions per week per retailer, the startup is on track to achieve a positive contribution margin by the end of 2024 or Q1 2025. The company aims to reach an annualized top line of $40 million to $50 million by 2026, the year it plans to expand beyond Morocco.