A FoodTech business from Morocco, Terraa is tackling the problem of the food supply chain by making direct purchases from farmers and delivering produce to retailers and convenience stores.
Funding Details
The company closed $1.5 million in a pre-seed fundraising round, led by Berlin-based FoodLabs, with participation from UM6P Ventures, Outlierz Ventures, Musha Ventures, and DFS Lab, to solidify its position in this $500 billion sector.
While the region battles global warming and overpopulation, the food supply chain in Africa is impeded by intermediaries, operational inefficiencies, a lack of technology, and data.
As a result, it causes inflated costs, poor food quality, and enormous waste, all of which have an unfavorable effect on farmers and consumers.
With the most recent funding, Terraa will expand its team, enter key Moroccan cities, and develop its technological infrastructure.
“We recognized a chance to leverage technology to make the African food supply chain more transparent, effective, and sustainable. Youssef Benkirane, co-founder and CEO of Terraa, asserts that the company’s mission is to build a more egalitarian and environmentally sustainable food system for all people. We’re happy to have such well-known and like-minded investors support our cause.
Terraa is a tech-enabled B2B network that links farmers to fruit and vegetable retailers, supermarkets, hotels, and restaurants. It was founded by Youssef Benkirane and Benoit De Vigne, two seasoned entrepreneurs in the FoodTech and E-Commerce field.
“It’s an honor to be a part of this ground-breaking approach to the challenging problems the African food supply chain faces. According to Benoit De Vigne, co-founder, and COO at Terraa, “We’re eager to witness the immediate good impact our technology can have on the lives of millions of farmers and customers.”
Farmers may access stable markets at better prices and earn more enormous profits thanks to the Terraa digital platform, and merchants profit from low pricing and a steady supply of high-quality products.
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The platform also has a positive impact on the environment because it decreases food waste, greenhouse gas emissions, freshwater use, and land use.
For the next few years, the company’s objective is to build a sustainable food supply ecosystem to meet the population’s needs.
With the help of its technology and logistical network, Terraa asserts that it will be able to supply food that is both safe and affordable to hundreds of millions of Africans.
“We’re pleased about Terraa’s objective to increase food access and affordability while assuring stable income for farmers throughout Africa. Food supply chains continue to be extremely complex in areas where mobile usage is widespread, according to Till Hoelzer, an investor at FoodLabs. We believe there is a huge opportunity to use technology to make transactions faster and more effective.
According to Lamiaa El Amrani El Mrini, Investment Director at UM6P Ventures, “The business founders will greatly contribute to the Moroccan and African Agritech systems as Terraa’s platform directly connects farmers to urban markets and secures and enhances their earnings.” “UM6P Ventures is happy to be contributing to the improvement of smallholder farmers’ lives by welcome Terraa to its portfolio.”
