Egyptian agtech startup FreshSource has raised seed funding from HIMangel, the Cairo-based angel fund has told MENAbytes. The size of deal was not disclosed.
Founded earlier this year by a brother and sister duo, Farah Emara and Omar Emara, FreshSource is an up and coming tech-based B2B platform that aims to serve as a connection between farmers and urban retailers/vendors.
For farmers, the platform would make it easier to sell their produce and for vendors, the sourcing will get easier. The platform will also offer transparency to both the sides which is normally missing for them because of the whole-sellers they normally depend on.
So if a vendor needs a certain type of horticulture produce, they would reach out to FreshSource who would source it from the farm, arrange and manage the logistics and deliver it to the vendor or retailer.
Twiga, a Kenyan startup with a similar model was in spotlight last year after raising $10.3 million Series A that was led by Dubai-based Wamda Capital. They have managed to raise another $7 million two months ago in Series B led by International Finance Corporation.
FreshSource is taking a value chain approach to improve the economic and environmental efficiency of the food supply chain in Egypt where the food waste has reached an all-time high at over 30% due to improper handling and storage techniques.
Since launching couple of months ago, they already have more than 50 vendors and tens of farms on-board with them who are using their services.
For now, the startup is relying on their internal database and some tools to get the job done but plans to build and launch their own online platform now that they’ve raised enough capital.
Through the platform the company aims to collect and analyse data on market demand and prices, enabling a more strategic and market driven approach to crop production planning.
Farah Emara, the founder & CEO, speaking to MENAbytes, about the platform, said, “Extremely long and inefficient value chains contribute to significant food loss as well as heightened prices to the end consumer. FreshSource is working with farmers to enhance their technical capabilities, production planning and post-harvest techniques as well as connecting them to buyers at fair prices.”
“Hence, increasing their income as well as securing reasonable prices for urban retailers and, in turn end consumers,” she added.
Khaled Ismail, Managing Partner at HIMangel, also spoke to MENAbytes, commenting on the investment, “For HIMangel, FreshSource is the latest addition to its portfolio as it sees a great potential in the business and multiple consolidation opportunities between FreshSource and the other fund’s agtech portfolio startups.”
Earlier this year, HIMangel had also invested in Bermoda, another Egyptian agtech startup, that develops biofertilizers from agricultural waste.