Moroccan investment firm Al Mada Ventures has taken control of the agri-tech startup YoLa Fresh, according to a public summary of the transaction released by Morocco’s Competition Council. The acquisition grants Al Mada Ventures, a fund dedicated to backing technological innovation in Africa, an influential position in YoLa Fresh as it aims to streamline Morocco’s fragmented fresh produce supply chain. This follows YoLa Fresh’s recent $7 million pre-Series A funding round, secured earlier this year to drive its expansion efforts.
Founded in 2023 by Moroccan entrepreneurs Youssef Mamou and Larbi Alaoui Belrhiti, YoLa Fresh connects smallholder farmers directly with traditional retailers, aiming to cut out middlemen who typically contribute to inefficiencies in the supply chain. YoLa Fresh claims to work with over 1,000 local retailers and reaches a monthly gross merchandise volume (GMV) of around $1 million. By bypassing intermediaries, YoLa Fresh seeks to empower farmers, allowing them to earn more while enabling retailers to buy fresh produce at lower prices.
Co-founder and CEO Youssef Mamou, a former general manager of Uber’s Careem and head of the Moroccan startup incubator 212 Founders, brings a personal connection to the sector. “I come from an agricultural family, so it made sense to build something impactful,” he said. His co-founder, Alaoui, previously held executive positions, including CEO of Jumia Morocco. The duo researched similar agri-tech models globally before launching YoLa Fresh, inspired by success stories like Frubana in Latin America and Waycool in India.
Morocco’s agricultural landscape, contributing approximately 15% to the nation’s GDP, is largely driven by smallholder farmers, with traditional retail comprising up to 95% of distribution. YoLa Fresh aims to use technology to improve market efficiencies by connecting farmers and retailers while minimizing food waste. “Morocco’s supply chain for produce is fragmented, and traditional retail dominates,” Alaoui explained. “With our platform, we’re working to simplify that process, making it more efficient for everyone involved.”
Beyond sales and purchases, YoLa Fresh’s platform uses data analytics to provide insights into harvests and market demand. By tracking produce from farm to retail, the startup enables retailers to place orders by midnight for early morning delivery. This model has reduced food waste, which, according to Mamou, can reach up to 40% in traditional supply chains. YoLa Fresh has brought that down to 6–7%, with plans to reduce it to 3% by 2026.
The startup’s commitment to cash-on-delivery transactions has fostered a loyal customer base, boasting an 85% retention rate. Mamou revealed that YoLa Fresh is on track to reach a positive contribution margin by early 2025. By controlling unit economics and working closely with farmers, the company maintains a 20% take rate, positioning it for robust revenue growth, with projections to reach $40 million to $50 million in annualized top-line revenue by 2026.
Al Mada Ventures’ managing director, Omar Laalej, commented on YoLa Fresh’s impact on Morocco’s agricultural sector. “The agriculture sector is a major contributor to economic growth and stands to gain from tech-enabled solutions,” Laalej noted, emphasizing YoLa Fresh’s potential to become a leader in the North African region’s agricultural modernization. Al Mada Ventures, along with co-investors Algebra Ventures, E3 Capital, and FMO, are supporting YoLa Fresh in its ambition to lead the shift toward a more efficient, digitally integrated supply chain in Morocco.
Implications of the Takeover
The Competition Council’s review of this acquisition of controlling interest in YoLa Fresh is part of its mandate to ensure competitive practices within Morocco’s fresh produce market. Although YoLa Fresh is registered as a U.S.-based entity, its operations and market are primarily localized in Morocco, granting the Moroccan Competition Council oversight in assessing its market impact. Al Mada’s stake in YoLa Fresh could influence market dynamics, particularly if Al Mada holds other interests in Morocco’s agri-tech or fresh produce sectors.
YoLa Fresh’s acquisition marks a step forward in Morocco’s digital transformation of its agricultural economy, as the nation seeks to scale homegrown tech solutions. As YoLa Fresh looks to scale its operations within and beyond Morocco, it positions itself as a model for how technology can address challenges in food distribution and provide economic empowerment to smallholder farmers across the region.