Food distribution startup, Terraa has raised $1.5 million pre-seed funding in a round led by European early-stage VC investor, FoodLabs.
Terraa plans to extend its food and vegetable supply cost solution as it builds collection centers in all the major agricultural cities of Morocco. This will enable the foodtech to store collected produce from farmers for distribution to end customers.
Other investors who participated in the round were UM6P Ventures, Outlierz Ventures, Musha Ventures, and Africa-centric DFS Lab.
Terraa’s solutions include a logistic network and advanced technology tackling issues that lead to high prices. These issues include logistic inefficiencies, multiple intermediaries and limited hygiene.
The investment will also be used to strengthen Terraa’s logistics infrastructure as it explores new markets.
Youssef Benkirane and Benoit De Vigne founded Terraa last year. The company sources fresh food directly from farmers and delivers it to resellers.
Users including retailers, restaurants and other resellers place their orders via Terraa’s website or WhatsApp platform. Most of the processes are done internally for quality control, but the company plans to increase partnerships with external providers, where possible, to support some of its operations.
Terraa’s operation model ensures that the price of produce they sell is not inflated, hygiene is maintained during the entire process from production, packaging, to the delivery, and that there is less food wastage because of a ready market.
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