It was announced that the Egyptian agtech startup Mozare3 has raised more than $1M in a pre-seed round drove by Algebra Ventures and Disruptech. The round additionally incorporated the cooperation of EFG-EV and some private backers. The platform was established last year by Hussein Abou Bakr and Tamer El-Raghy. The platform intends to serve more than 20M farmers across Egypt by giving them admittance to business sectors and credit. It also expects to fabricate the main advanced local area for farmers of Egypt to offer them agronomy support through its organization of topic specialists.
Mozare3 assists farmers with selling their crops by working with institutional purchasers like processors of frozen vegetables along with wholesalers and retailers. It consents to offtake arrangements with the farmers to buy their produce’s future crop at a specific cost for the institutional buyers for the most sale. It assists farmers with decreasing the danger of not having the option to discover a purchaser when the harvest is fit to be sold meanwhile leaving the rest to Mozare3. They right now have 100 farmers with who they have offtake concurrences and three big companies for sales. A large portion of what Mozare3 does is being done offline yet they’ve been trying their application through a private beta with a little gathering of farmers. The public dispatch of the application will empower farmers to sell their future items through this online platform, access credit, get agronomy backing, and purchase suitable fertilizers and different agro products to develop crops.
Mozare3 means to carry out various fintech contributions for the farmers however what it has begun with is working capital in the type of upfront transactions for offtake arrangements. The farmers who consent to offtake arrangements get a piece of the absolute thought for the future crop toward the start of the harvest time frame to cover their underlying costs. The Egyptian startup also plans to dispatch credit answers for money acquisition of various items for farmers and their families. Strangely, for the present, Mozare3 is financing the credits from its own books yet plans to bring adventure obligation up later on for it.
“We aim to grow our network of farmers [who we have offtake agreements with] to up to 2,500 and have between 25 to 50 institutional buyers by the end of 2022. Mozare3’s app will also serve farmers with who we don’t have off-take agreements by helping them buy different types of products and receive online support from our in-house experts. We’re hoping to reach 10,000 farmers within the next eighteen months with the app,” stated Hussein.
“While the Agri sector contributes more than 10% of the GDP and 25% of national employment, farmland [in Egypt] is very fragmented with more than 40% of the farms with an area of less than 1 acre. This fragmentation represents an opportunity for an agri-fintech platform, like Mozare3, to bring efficiencies to the supply side, by providing those farmers with innovative financial products, agronomy support, and access to markets, and hence turn those farmers into contract-farmers, in order to fulfill the growing demand of consumers, processors, and exporters,” said Tamer El-Raghy, the co-founder of Mozare3.
”The agriculture industry suffers from price opaqueness, supply fragmentation, and high levels of fraud, to name a few of the challenges. We believe that it is one of the segments of the Egyptian economy that can benefit the most from tech efficiencies. We had been looking at making an agritech investment for some time and are delighted to support Hussein and Tamer as they address this massive opportunity. We were impressed by the vision, capabilities, and passion of the Mozare3 team, and we are excited to be part of their journey,” said Tarek Assaad, the Managing Partner at Algebra Ventures.,
“We are very excited to lead this round for Mozare3 – a large, under served segment and very experienced management team. We have been working closely with the Mozare3 founding team for a year to launch the first agri-fintech company in Egypt. We are very confident that Mozare3 will digitally transform this market and enable farmers to access finance and market information in a very innovative way,” said Mohamed Okasha, Managing Partner at Disruptech.