MOROCCO - Terraa, a Moroccan B2B distribution platform for fruits and vegetables, has opened its 18th store, continuing its rapid expansion across the country. 

The foodtech startup, which seeks to streamline the supply chain by cutting out wholesalers and distributors, aims to reduce inefficiencies, minimize waste, and offer lower prices to consumers.

Founded with the mission of connecting farmers directly with retailers and HORECA (hotels, restaurants, and cafés), Terraa has seen steady growth since its inception. 

The company raised US$1.5 million in pre-seed funding in February 2023 from European venture capitalists, including FoodLabs and other investors. 

The funding has enabled Terraa to build its logistics network and expand its physical footprint. The startup opened its first store in February 2024 and has rapidly scaled to 18 branches as of October 2024.

Cutting waste and lowering prices

Terraa’s unique business model is designed to offer an end-to-end logistics solution that connects farmers directly with retailers, bypassing traditional intermediaries. This not only reduces the overall cost of produce but also significantly cuts down on waste. 

The company claims to have a wastage rate of just 4% by volume, an impressive figure in an industry known for its high levels of spoilage.

By sourcing fresh produce from local farmers and delivering it directly to retailers and HORECA outlets, Terraa has been able to build a more efficient and sustainable supply chain. 

The physical stores, which now operate in cities such as Casablanca, Bouskoura, Dar Bouazza, and Nouaceur, serve both B2B and B2C customers, broadening Terraa’s reach to individual consumers as well.

Rapid expansion and future goals

Terraa’s expansion has been swift. By May 2024, just three months after opening its first store, the company had already grown to 14 stores and attracted over 600 clients. 

Now, with 18 stores in operation, Terraa is well on its way to achieving its goal of opening 200 stores across Morocco by the end of 2026.