Moroccan agritech startup YoLa Fresh secures $7 million pre-Series A to solve supply chain issues

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May 30, 2024
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2 min read
YoLa Fresh co-founders
  • YoLa Fresh, a Moroccan agritech startup directly connecting smallholder farmers with traditional retailers of fruits and vegetables, has secured $7 million in pre-Series A funding to link farmers with retailers.
  • Al Mada Ventures led the funding round, with other investors including Algebra Ventures, E3 Capital, Janngo Capital, and the Dutch Entrepreneurial Development Bank (FMO). 
  • While YoLa Fresh aims to expand into additional markets, its main focus is Morocco. The startup plans to expand beyond Morocco in 2026.

Launched in 2023 by Youssef Mamou and Larbi Alaoui Belrhiti, the startup seeks to fix supply chain issues between farmers and retailers. 

By putting farmers in contact with retailers and food service providers, it seeks to remove middlemen from the food supply chain. Consequently, this approach would synchronise supply and demand to reduce waste, resulting in lower fees and increased profits.

YoLa Fresh also uses data from both stakeholders to provide insights into harvests and financing options. 

The agritech, which began in Morocco, says it has worked with over 1,000 retailers throughout North Africa. The startup also claims to have reached a gross merchandise volume (GMV) of $1 million. 

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YoLa Fresh reportedly delivers more than 1,200 tonnes to customers monthly and claims to have an 85% customer retention rate, with an average of four transactions per retailer weekly.

The startup claims that the analytics show strong customer loyalty, which will help the business achieve a positive contribution margin by Q4 or Q1 2025.

The startup also intends to double down on cash on delivery with traditional retailers, collaborate closely with farmers to increase margins and prioritise unit economics. 

YoLa Fresh expects to generate an annualised top line of $40 million to $50 million by 2026, with plans to expand outside of Morocco in the same year.

With 15% of its GDP coming from the agricultural sector, Morocco is a promising market for the startup. Morocco also has a large domestic market with a substantial base of consumption; the country's traditional trade sector is estimated to generate between $5 billion and $6 billion in revenue annually.

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