Terraa, a Moroccan startup focused on creating a more efficient and sustainable food supply system, has raised $1.5 million in pre-seed funding to expand its operations. The company aims to enhance food distribution first within Morocco and then across Africa.Founded with the goal of addressing the challenges faced by farmers and retailers, Terraa offers a digital platform that ensures farmers have access to stable markets and higher incomes, while providing retailers with competitive prices and a reliable supply of high-quality goods.
The startup’s value proposition has gained traction since launching its pilot program in August, attracting both restaurants and retailers to its platform.When asked about the challenges posed by global economic conditions, CEO Youssef Benkirane emphasized that the fluctuating prices in the food market haven’t hindered Terraa’s ability to offer better margins to farmers. By cutting out intermediaries, Terraa ensures that farmers can consistently earn more, regardless of market volatility.
However, the company faces operational hurdles in Morocco, where the fragmented nature of the farming community presents challenges in aggregating supply and ensuring efficient distribution. To overcome these issues, Terraa is leveraging networks built by e-commerce platforms to improve last-mile delivery logistics.With its recent funding, Terraa plans to focus on building its technology, hiring skilled talent, and refining its operational and commercial strategies in Morocco.
Once the model is fully optimized, the company aims to replicate it across key African markets.Benkirane also highlighted the importance of the funding as a sign of investor confidence in Terraa’s mission. Despite the current venture capital downturn, the startup’s oversubscribed funding round underscores the pressing need for innovative solutions to Africa’s food supply challenges. Over the next year, Terraa will focus on scaling its operations, expanding its reach in Morocco, and fine-tuning its approach before exploring further expansion into Africa.
