The food supply chain in Africa is hampered by intermediation, operational inefficiencies, and a lack of technology and data, all while the continent grapples with global warming and overpopulation.
Consequently, it leads to inflated prices, poor quality of food, and significant waste, all of which disproportionately impact farmers and consumers.
Based out of Casablanca, Morocco, Terraa, a foodtech startup is addressing the issue by purchasing directly from farmers and fulfilling deliveries to fruit and vegetable vendors, whether retailers or convenience stores.
To cement its position in this $500B market, the company closed $1.5 million in a pre-seed funding round led by Berlin-based FoodLabs (also backed Bright Biotech and Bevy), with participation from UM6P Ventures, Outlierz Ventures, Musha Ventures, and DFS Lab.
With the latest capital, Terraa will grow the team, expand in major cities in Morocco, and build out its technology infrastructure.
“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,” claims Youssef Benkirane, Co-founder and CEO at Terraa. ”We’re glad to have won such renowned and like-minded investors to back our mission.”
Bringing affordable food to Africa
Founded by Youssef Benkirane and Benoit De Vigne, two seasoned entrepreneurs in the FoodTech and E-Commerce space, Terraa is a tech-enabled B2B platform connecting farmers to fruit and vegetable retailers and supermarkets, as well as hotels and restaurants.
“It’s a privilege to be a part of this innovative solution to the complex issues faced by the African food supply chain. We’re excited to see the immediate positive impact our technology can have on the lives of millions of farmers and consumers,” says Benoit De Vigne, Co-Founder and COO at Terraa.
With the Terraa digital platform, farmers can 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 is on a mission to create a sustainable food supply ecosystem to meet the population’s demand over the next few years.
Terraa claims that it will provide hundreds of millions of Africans with safe and affordable food using its technology and logistics infrastructure.
“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.”
“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.”
