Why We Invested in FreshSource: Transforming Fresh Produce Supply Chains in MENA

Agriculture plays a vital role in the Middle East and North Africa (MENA) region, supporting millions of livelihoods and serving as a crucial pillar for food security. Yet, inefficiencies in supply chains, high post-harvest losses, and fragmented distribution networks limit the ability of farmers and businesses to reach markets efficiently.

In Egypt, smallholder farmers, who produce a significant portion of the region’s fresh produce, often struggle with an inefficient and outdated distribution system dominated by multiple intermediaries. These middlemen drive down farmers’ earnings, inflate costs for food businesses, and contribute to significant food waste. A staggering 45% of food is lost in the country before it reaches store shelves, deepening food insecurity and economic inefficiency, according to the Food and Agriculture Organization (FAO), which estimates that approximately 50 kg of food per person is lost annually.

Addressing these inefficiencies requires innovative solutions that enhance transparency, optimize logistics, and create a more sustainable supply chain. This is where FreshSource comes in.

FreshSource, co-founded by siblings Farah and Omar Emara, is on a mission to build MENA’s most sustainable fresh food systems by streamlining logistics, reducing middlemen, and ensuring fair prices for both producers and buyers.

Empowering Farmers and Businesses

“Our mission is to modernize and digitize the fresh produce supply chain, making it more efficient, transparent, and sustainable,” says Farah Emara, Co-Founder and CSO at FreshSource. “Omar and I started FreshSource because we experienced firsthand the inefficiencies in the agricultural supply chain. Growing up around family businesses in the food and agriculture industries, we witnessed the challenges farmers faced in accessing markets and the difficulties businesses encountered in securing consistent, high-quality supplies. The disconnect between supply and demand was driving up waste and costs, highlighting the need for a more efficient, technology-driven solution. FreshSource was born from our desire to bridge this gap, empowering farmers with better market access while ensuring businesses get the fresh, affordable produce they need.” 

Launched in 2019 to provide an end-to-end solution that benefits all stakeholders in the supply chain, FreshSource works with farmers to supply produce to businesses, optimizing procurement and distribution to reduce food loss and maximize profits. Their model ensures fresher produce reaches consumers faster by cutting reliance on traditional, inefficient marketplaces.

The startup has built a robust network of thousands of producers and hundreds of businesses, including restaurants, hotels, online retailers, and traditional retailers, supplying them with fresh fruits and vegetables. Since its launch, the company has partnered with over 400 farms and suppliers, optimizing supply chains and providing more reliable market access. 

By leveraging data-driven insights, their platform empowers farmers to make informed decisions about what to grow, when to harvest, and where to sell, boosting both productivity and profitability. FreshSource’s network of businesses benefits from consistent quality and predictable pricing and allows them to source local food reliably, boosting the regional economy. 

FreshSource’s platform offers a comprehensive solution for farmers and buyers. Farmers can join the network, create a profile, and start selling their produce. They are paid based on quality and volume, and after two successful seasons, they can qualify for contract buying, ensuring better pricing and reliable market access. FreshSource is launching a pilot with the Central Bank of Egypt to offer financing to some of their long-term farm customers. 

For businesses, FreshSource digitizes the ordering and delivery process providing an easy-to-use dashboard to place orders, track deliveries, and view order history and invoices. Buyers also gain valuable insights into consumption patterns and pricing trends, which help optimize procurement decisions, ensuring fresher produce and more efficient supply chains.

Why Village Capital Invested in FreshSource

We invested in FreshSource because of its transformative impact on Egypt’s food system. We also got to know the founding team through their participation in a Village Capital accelerator program for sustainability in MENA in 2020.  By streamlining and digitizing the connection between farmers and institutional buyers, they’re improving the traditional agricultural value chain in two critical ways:

First, they’re making regional food procurement more efficient and accessible. Their digital platform and logistics infrastructure enable institutions, such as hotels, restaurants, and retailers, to source fresh produce directly from local farmers more reliably and easily. From an environmental lens, digital order history and sales insights enable institutions to reduce food waste. Local sourcing also reduces the distance food travels from where it is grown to where it is consumed, saving on carbon emissions. 

Second, they’re improving the livelihoods of farmers in Egypt. Eliminating multiple intermediaries from the supply chain ensures farmers capture a larger share of the food dollar. By offering contract buying, they help farmers sell more of their harvest. These factors lead to increased profitability, which is particularly impactful for farmers operating on thin margins. The additional services FreshSource will offer will continue to benefit farmers operationally and economically. Stronger local food systems have ripple effects beyond the farmers and buyers; they benefit the entire local economy. 

By strengthening regional food systems, FreshSource provides invaluable environmental and economic benefits within Egypt. The team’s deep industry knowledge positions FreshSource as a leader in agricultural innovation. We’re excited to support them as they build their tech and continue adding new services benefitting Egypt’s farmers and buyers. 

“At FreshSource, we believe in the power of technology to create a more sustainable and efficient food system,” Farah explains. “The investment from Village Capital will accelerate FreshSource’s growth and deepen our impact across the agricultural supply chain. It will enable us to expand our operations, enhance our technology, and strengthen our logistics network to better serve farmers and businesses. With this support, we can drive greater efficiency, reduce waste, and create more opportunities for farmers, ultimately transforming the fresh produce industry in the region.

Looking Ahead

FreshSource is now focused on expanding its digital services for farmers and buyers, as well as enhancing its logistics capabilities. By continuing to innovate and optimize its supply chains, FreshSource ensures a more sustainable and prosperous future for the agricultural sector in the MENA region. 

We are proud to support their journey and look forward to seeing the continued impact they have on the region’s food system.