The conversations on startups and fundraising have revolved around the fintech sector in recent times, yet there are equally pressing challenges in the food industry that need urgent attention and investor partnerships to drive sustainable solutions.
Africa’s food sector grapples with critical issues stemming from low agricultural productivity, distribution bottlenecks, and limited access to modern inputs.
The scarcity of storage facilities and inadequate infrastructure contribute to substantial post-harvest losses. With Africa’s population projected to double by 2050, the demand for food will skyrocket.
Amidst these trials and the uphill struggle, Nairametrics zeroes in on food startup communities building companies that attempt to tackle Africa’s developmental food concerns.
The focus of this series on the food industry is because of its central role in Africa’s economic and social advancement.
With highlights on food tech startups that have secured $1 million or more in funding, Nairametric’s choice of $1 million as the funding benchmark is not arbitrary; it signifies a strategic decision to highlight startups that have surpassed the $1 million funding threshold.
This does not in any way undermine startups that have not reached this benchmark in funding.
10. Brito (Egypt)
Funding: $1.25 Million
Brito Cloud Kitchens, founded by Rania Reda and Mo’nes Sadeq in 2022 an Egypt food tech platform that operates multiple commercial food production facilities.
Brito hopes to reshape the industry by making it more profitable for restaurants to open up and expand using technology-led tools to improve scalability.
In December 2022, Brito secured $1.25 million in a pre-seed round.
9. Terraa (Morocco)
Funding: $1.5 Million
Terraa, a Morocco-based food-tech startup, is bringing an innovative approach to the industry by connecting farmers directly with retailers, restaurants, and service providers.
The startup sources fresh produce directly from farmers to fulfil online orders by retailers, restaurants and other resellers.
In 2023, the company raised $1.5 million in a pre-seed funding round from five investors.
Founders, Benoit De Vigne and Youssef Benkirane established Terraa in 2022.
8. Afribon (Rwanda)
Funding: $2 Million
Founded in 2012 by Anne Merienne, Afribon is a Rwanda-based brand specializing in flavour-based taste compounds for the food and beverage market.
It aspires to be a one-stop supplier for local manufacturers seeking speciality ingredients. In October 2018, the company successfully raised $2 million in venture funding.
Its impressive performance led to its acquisition by renowned business-to-business ingredient solutions provider Kerry Group in December 2021.
7.ReelFruit (Nigeria)
Funding: $3.05 Million
Affiong Williams founded ReelFruit in 2012, carving a niche in the Nigerian market as a dried fruit company acclaimed for its preservative-free snacks.
ReelFruit’s solution is geared towards reducing the rate of harvest loss for farmers due to a lack of storage facilities.
With a drying factory, the company can help drive the preservation of fruits. It raised $50,000 in pre-seed funding in 2020 and $3 million in series A funding in 2021.
The company has continued to expand operations across the country.
6. Big Square (Kenya)
Funding: $3.8 Million
Founded in 2013 by Morne Deetlefs, Big Square stands out as a leading Kenyan fast-food chain company.
It targets urban consumers by offering a full-service restaurant experience at affordable prices. The company raised over $3.8 million in funding from one investor in 2018.
While details of its last funding round remain undisclosed, Big Square continues to expand operations across.
5. Orda
Funding: $4.75 million
Orda is a cloud-based restaurant service streamlining small business financial operations.
Equipping small and medium-sized restaurants with digital tools enhances tasks like reconciliation and inventory management.
Funding includes $1.1M pre-seed (Jan 2021), $3.4M seed (Nov 2022), and non-equity assistance worth $150,000 from Google (Jun 2023).
Founded in 2020 by Guy Futi, Akinwale, Mark Edomwande, Kunle Ogungbamila, and Namir El-Khouri, the cloud-based food company is bolstered by support from 21 investors.
4. Releaf (Nigeria)
Funding: $9.61 Million
Releaf, a Nigerian AgriTech food startup, designs agricultural machinery to enhance the efficiency of African food factories.
The company secured $3.3 million in its seed funding round and received a grant of $260,000 in 2021. These contributions have led to cumulative funding exceeding $9.61 million across 11 rounds from 21 investors.
Founded in 2017 by Joshua Nzewi, Ikenna Nzewi, Isaiah Udotong, and Uzoma Bailey Ayogu, Releaf is headquartered in Uyo.
3. Elmenus (Egypt)
Funding: $19.5 Million
Founded by Amir Allam in 2011, Elmenus through its AI–powered search recommendation tool, users access restaurant information in Egypt.
It raised an $8 million Series B funding round in early 2020 and a $10 million pre-Series C round in 2021. Elmenus raised an Angel round of $100,000 in 2021 and late VC undisclosed funding in 2022.
Bringing its total funding to about $19.5 million across 7 rounds from 11 investors. Elmenus has continued to expand its service across the country.
2. Breakfast (Egypt)
Funding: $28 Million
Established in 2017 by Abdallah Nofal and Mostafa Amin, Breakfast offers a daily supply of fresh bakery products delivered straight to customers redefining the grocery shopping process.
Breakfast raised $26 million in Series A in 2021. It had previously raised $ 2 million in pre-series-A funds.
Bringing its cumulative to $28 million in funding from 24 investors.
1. Edita Food Industries (Egypt)
Funding: $102 Million
Edita Food Industries stands as a market leader in baked food products in Egypt. Founded by Hani Berzi in 1996, the company’s mission revolves around meeting the escalating consumer demand by expanding production capacity and distribution networks.
In June 2013, Edita secured $102 million in private equity funding from a single, undisclosed investor.
Presently listed on the London and Egypt stock exchanges, Edita’s strategic moves include the acquisition of 100% of Fancy Foods, marking its entry into the frozen bakery segment in May 2023.
Note: This is the first part of a series of stories highlighting the activities of Startups in critical sectors important for Africa’s quest for development.
This is great for Africa. More to come!