Morocco-based food distribution platform Terraa has raised $1.5M in its Pre-SEED funding round led by FoodLabs, a European early-stage VC investor and venture studio for food, sustainability, and health.
FoodLabs has led a $1.5m investment in foodtech startup Terraa, which was the largest pre-seed investment round in Morocco. Other investors included UM6P Ventures, Outlierz Ventures, Musha Ventures, and DFS Lab.
“We’re excited about Terraa’s mission of making food more affordable and accessible throughout Africa whilst ensuring secure income for farmers. In regions where mobile penetration is ubiquitous, food supply chains remain highly complex,” said Till Hoelzer, investor at FoodLabs.
“We see a massive opportunity in leveraging technology to drive quicker and more efficient transactions.”
Terraa is founded by Youssef Benkirane and Benoit De Vigne, two seasoned entrepreneurs in the FoodTech and E-Commerce space. The investment will be used to double down on Terraa’s mission of building a sustainable food supply ecosystem in Africa.
With its tech-enabled B2B platform and logistics infrastructure, the Morocco-based company is starting out to revolutionize the African food supply chain and provide safe and affordable food to hundreds of millions of people.
“We saw an opportunity to use technology to bring transparency, efficiency, and sustainability to the African food supply chain. Terraa is not just about connecting farmers and retailers, it’s about creating a more equitable and environmentally-friendly food system for everyone,” commented Youssef Benkirane, Co-founder and CEO at Terraa.
”We’re glad to have won such renowned and like-minded investors to back our mission.”
With the Terraa digital platform farmers are able to earn higher incomes and access stable markets at better prices, while retailers benefit from competitive prices and a consistent supply of high-quality goods. The platform also has environmental benefits, as it reduces food waste and lowers greenhouse gas emissions, freshwater usage, and land usage.The company has already achieved strong traction in its first weeks of operation, showing the need for a tech-enabled solution to the challenges of the African food supply chain.
In Africa, the food supply chain is plagued by intermediation, operational inefficiencies, and a lack of technology and data, while the continent is particularly facing global warming issues and over population. This leads to inflated prices, poor quality of food, and significant waste, all of which disproportionately impact farmers and consumers. Terraa addresses these issues by purchasing directly from farmers and fulfilling deliveries to fruit and vegetable vendors, whether retailers or convenience stores, as well as hotels and restaurants, tapping into a $500bn market and impacting over 60% of the African population.
“The startup founders will significantly contribute to the Moroccan and African Agritech systems as Terraa’s platform directly connects farmers to urban markets and secures and improves their revenues,” said Lamiaa El Amrani El Mrini, Investment Director at UM6P Ventures stated. “By welcoming Terraa to its portfolio, UM6P Ventures is thrilled to be part of improving smallholder farmers’ livelihoods.”