Morocco’s Food Tech Startup Terraa Raises $1.5 Million Pre-Seed

Terraa, a Moroccan-based B2B food distribution platform, has raised $1.5 million in a pre-Seed funding round led by FoodLabs, alongside other strategic investors such as UM6P Ventures, Outlierz Ventures, Musha Ventures and Africa-centric DFS Lab.

Founded by Youssef Benkirane and Benoit De Vigne in 2022, Terraa enables farmers to earn higher incomes by selling their produce directly to resellers at fair prices while also providing retailers with a consistent supply of high-quality products.

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

According to the startup, the supply chain of fresh food in Morocco is fragmented, with retailers buying food from farmers at very low prices and often selling it for high profit margins. The startup aims to change that by making the process more equitable and sustainable for both farmers and resellers.

The new funding will be used to strengthen the startup’s logistics infrastructure, grow the team, and expand across the country.

The Moroccan startup ecosystem has been growing steadily in recent years. In 2022, startups in the country raised $30 million in more than 25 funding rounds, according to the Morocco Startup Ecosystem report by Lotf Belych and Yassin El Hardouz. That’s $1 million more compared to 2021, according to a report by Techcabal.