1) What is exactly that you do, and what is your start-up about?
At YoLaFresh, our mission is to revolutionize the fresh produce supply chain in Morocco and Africa by leveraging technology and data to disrupt traditional distribution models. We strive to create a more efficient and transparent system that benefits all stakeholders, from farmers to retailers and consumers. Our vision is to create a world where access to fresh, high-quality produce is a universal right. We believe that by empowering farmers and retailers with innovative technology solutions, we will improve their livelihoods and make a positive impact on their communities.
2) What is the problem that your start-up is trying to resolve?
Smallholder farmers in fresh produce supply chains struggle to achieve sustainable livelihoods due to the highly fragmented and inefficient retail market across the continent, where roughly 90% of retailers are small independent businesses.
At YoLa Fresh, we empower farmers and other players in the ecosystem like never before. Our highly efficient supply chain is capable of moving thousands of tons of perishables from farms to businesses in less than 24 hours, disrupting the way fruits and vegetables move from farms to consumers’ plates.
3) What inspired you to start this particular business?
Larbi Belrhiti, co-founder, embarked on an inspiring journey when he acquired a small farm. He realized the challenges of building a profitable agribusiness with thin margins, a common issue in emerging markets. Meanwhile, as I managed an early stage VC fund, Larbi approached me seeking advice on raising capital for his business idea. Little did we know that this encounter would spark a transformative partnership. In just 30 minutes, our shared vision for a purpose-driven venture aligned so perfectly that we became co-founders, driven by a common goal.
Driven by our shared vision, we founded Yola Fresh to revolutionize the supply chain between smallholder farmers and traditional markets. Our passion for digitizing and streamlining this process stems from the desire to empower farmers and uplift communities. Through Yola Fresh, we aim to bring unprecedented efficiency to the agricultural industry, creating opportunities, improving livelihoods, and building a sustainable future.
With unwavering determination, we are transforming challenges into incredible opportunities. By bridging the gap between farmers and markets, we are empowering communities, fostering economic growth, and revolutionizing agriculture one step at a time.
4) When was your start-up founded? What stage is your start-up currently at?
We started working on the idea in April 2022 and launched operations in March 2023. We are currently building operations and scaling our POC in Morocco.
5) Are you the sole founder? If not, how did your team meet? Who does what on your team?
We have been friends for 13 years, back when he was managing AVITO and I was heading mobile products at Samsung.
Larbi takes care of operations, Tech and HR. I look after sales, marketing, procurement, finance, and fund-raising.
6) What is your start-up business model, and how does it work?
We sell and deliver daily fresh produce to traditional retailers at market price (without any logistics mark-up, thus reducing their landed cost). Those produces are sourced from smallholder farmers at higher market prices. This way, we are redistributing the supply chain margin between farmers and retailers, the most important actors in this chain. We are building demand, then moving up the supply chain, increasing our confidence to build partnerships with farmers and ensure we acquire their produce well in advance.
5) What exactly differentiates you from your competitor in the marketplace? Can you name a few?
There are three major differences:
* Most competitors are mainly operating in the organized trade, hotels and restaurants. Not addressing more than 80+% of the market
* Their business model is basic: they buy from wholesale markets and deliver with a markup. They don’t improve farmers’ margins.
* We are building a strong demand base, which will allow us to provide forecasts and visibility to farmers, securing the produce before.
6) At what stage is your start-up currently at? (early-stage, growth stage, established)
We are currently in the early stages! Scaling fast but still early on this journey.
7) Can you discuss any significant milestones that your start-up achieved so far?
- We have already almost maxed up operations in our first distribution center (600 m2).
- More than 80% of our customers are re-ordering daily.
- We deployed the first layer of tech managing sales and stock. We now gather data like never before.
8) Can you provide some information about your target market and its size?
The idea is to become rapidly the leader in Western Africa, where the market is worth around $100 billion a year. Currently, we are building the playbook in Morocco, a $5 billion market.
9) How do you acquire customers or users, and what is your customer acquisition strategy?
The vision is to empower both retailers and farmers and give them access through a mobile and web-based interface. While we are accompanying them in this digital transformation, we have a team of sales executives and procurement executives, managing respectively a universe of retailers and farmers.
10) What are your main revenue streams?
The main revenue stream is the margin we will get from farmers when we sell the produce to retailers.
11) Have you received any funding or investment for your start-up? If yes, can you share the details?
Yes, we did. We are closing our pre-seed round (which will be the highest pre-seed in Morocco).
12) How do you plan to scale your business in the future?
We are planning to go to Tier 1 cities in Morocco in 2024. By 2025, we will have launched at least two countries in West Africa.
13) What are the biggest challenges you have faced so far, and how did you overcome them?
Convincing traditional retailers to trust us with their daily fresh produce and rely on us to deliver to them the right assortment and quality at the right price. We had to build this trust piece by piece by being close to them and progressively delivering on our promise.
14) How will you measure success for your start-up or the achievements that your start-up has reached?
There are several KPIs to track:
- Daily active users and their retention rate.
- Volumes (tonnage) daily.
- Assortment width (currently 56 SKUs)
- Procurement forecast accuracy.
- Margins.
15) How do you prioritize and manage your resources, such as time and budget?
- We are running a marathon at a sprint pace Urgency is key. We need to scale fast but right as well. So, we have daily/weekly/monthly targets for all teams. We track almost 30 KPIs daily and make sure the whole team is following growth and delivering on challenges.
As this is a traditional business where retailers pay cash on delivery, we make sure to have the right process and people in place to ensure well-oiled operations.
16) What is your marketing and branding strategy?
Peace of mind, ease of use and reliable business partner unlock more margins for both farmers and retailers.
17) How did customers/users find out about you?
Word of mouth. You work well, deliver on your promises and keep your word. News travels super-fast in town.
18) What is your target audience?
Traditional retailers (mom and pap shops, pushcarts, restaurants…)
19) Regarding your marketing strategy, do you use social media, and if so, is it in-house or outsourced?
We are building our brand to have a social presence and reinforce it. Mainly to increase trust towards our customers and be convinced that Yola Fresh is not a fairy tale but a real company, unlocking this value proposition.
20) Have you faced any regulatory challenges?
No, and we shouldn’t, as we are 100% compliant with local authorities.
21) How do you handle feedback and incorporate it into your product or service development?
Feedback is cement for our growth! We value feedback and incorporate it. As we are in daily business, it is a blessing to be able to improve operations and have a rapid feedback loop, acknowledging if things were solved or needed more improvements.
22) How did you hear about our blog?
I actually came across the blog during GITEX.
