Moroccan foodtech startup Terraa has closed a $1.5 million pre-seed round to double down on its mission of building a sustainable food supply ecosystem in Africa. The round was led by FoodLabs, with UM6P Ventures, Outlierz Ventures, Musha Ventures, and DFS Lab.

Terraa’s product offering, a tech-enabled B2B platform and logistics infrastructure, enables farmers 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.

“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,” claimed Youssef Benkirane, Co-founder and CEO at Terraa.”We’re glad to have won such renowned and like-minded investors to back our mission.”

The startup will use the funding to grow its team, expand to major cities in Morocco, and build its technology infrastructure. 

In Africa, the food supply chain is plagued by intermediation, operational inefficiencies, and a lack of technology and data, and the continent battles the effects of global warming and overpopulation. This has led to inflated prices, poor quality of food, and significant waste, all of which disproportionately impact farmers and consumers. 

Terraa is on a mission to address these challenges by purchasing directly from farmers and fulfilling deliveries to fruit and vegetable vendors, as well as hotels and restaurants.

“We’re excited about Terraa’s mission of making food more affordable and accessible throughout Africa while 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.”

Get the best African tech newsletters in your inbox