Sylvia Duruson
YoLa Fresh, a Moroccan agritech startup, has raised $7 million in pre-Series A funding to revolutionize the supply chain connecting smallholder farmers with traditional retailers of fruits and vegetables. The investment round was led by Al Mada Ventures, with participation 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 aims to address the inefficiencies and supply chain challenges that plague the agricultural sector. By directly linking farmers with retailers and food service providers, the startup eliminates middlemen, synchronizing supply and demand to reduce waste, lower fees, and increase profits for all stakeholders.
While YoLa Fresh has its sights set on expanding into additional markets, its primary focus remains on Morocco. The startup plans to broaden its reach beyond the Moroccan borders by 2026, leveraging the fresh capital injection to strengthen its operations and solidify its position in the local market.
At its core, YoLa Fresh utilizes data from both farmers and retailers to provide valuable insights into harvests, demand patterns, and financing options. This data-driven approach enables the startup to streamline the supply chain, ensuring a seamless flow of produce from farm to fork.
Since its inception, YoLa Fresh has collaborated with over 1,000 retailers across North Africa, achieving a remarkable gross merchandise volume (GMV) of $1 million. The startup currently delivers more than 1,200 tonnes of produce to customers monthly, boasting an impressive 85% customer retention rate, with an average of four transactions per retailer weekly.
The startup’s analytics reveal strong customer loyalty, a testament to the value it provides to both farmers and retailers. This loyal customer base is expected to help YoLa Fresh achieve a positive contribution margin by the fourth quarter of 2024 or the first quarter of 2025.
Moving forward, YoLa Fresh intends to double down on its cash-on-delivery model with traditional retailers, fostering closer collaboration with farmers to increase margins and prioritize unit economics. The startup anticipates generating an annualized top line of $40 million to $50 million by 2026, coinciding with its planned expansion beyond Morocco’s borders.
Morocco’s agricultural sector, which contributes 15% to the country’s GDP, presents a promising market for YoLa Fresh. With a substantial domestic market and a traditional trade sector estimated to generate between $5 billion and $6 billion in revenue annually, the startup is well-positioned to capitalize on the vast opportunities in the Moroccan agri-food industry.
By leveraging technology and data-driven solutions, YoLa Fresh is poised 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 alike.
