MOROCCO—YoLa Fresh, an agri-tech startup building a transparent and sustainable fresh food supply network, has secured a US$7 million pre-Series A funding round to expand.

Al Mada Ventures led the pre-Series A funding round, which included participation from Algebra Ventures, E3 Capital, Janngo Capital, and FMO, the Dutch entrepreneurial development bank.

YoLa Fresh aims to expand beyond Morocco to become a leading player in Africa’s agri-tech space, tackling food security challenges and fostering economic growth.

“We have achieved remarkable traction and demonstrated product-market fit in less than one year, reinforcing the effectiveness of our innovative business model, which this funding round recognizes and supports,” said Youssef Mamou, co-CEO of YoLa Fresh. 

“With this funding, we’ll expand our logistics network, bolster our technology, and empower more farmers to deliver high-quality produce directly to consumers,” said Larbi Alaoui Belrhiti, co-CEO of YoLa Fresh.

Founded by Larbi Alaoui Belrhiti and Youssef Mamou, YoLa Fresh has developed a platform that connects farmers directly with retailers and food service companies. Utilizing cutting-edge technology, the company tracks produce from farm to retail, ensuring transparency and minimizing waste. 

“As the agricultural sector continues its transition to digital supply chain technologies, we believe that Yola Fresh is well placed to offer real added value to its customers while positively impacting the ecosystem. We are delighted to support the company’s commercialization strategy and expansion,” said Omar Laalej, managing director at Al Mada Ventures.

As a leader in Africa’s agritech revolution, YoLa Fresh is committed to tackling food security challenges and fostering economic growth. This investment marks a significant step towards achieving its vision of becoming an African unicorn.

“YoLa’s combination of technology and operational capabilities will enable it to create significant efficiencies across the entire farm-to-retail supply chain,” Tarek Assaad, Managing Partner at Algebra Ventures, said.

“The agritech sector is a major contributor to economic growth and employment in our region and stands to gain significantly from tech solutions. 

“YoLa Fresh is uniquely positioned to lead that transformation in Morocco and beyond. As a relative newcomer to the Moroccan VC space, we are excited about the market’s upside potential and look forward to continuing to support Moroccan tech startups.”

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

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

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 prioritize unit economics. 

YoLa Fresh expects to generate an annualized top line of US$40 million to US$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 US$5 billion and US$6 billion in revenue annually.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE