Fresho raises USD $17m for US expansion & tech growth

Fresho, a food order management platform, has closed a USD $17 million Series B funding round and announced plans for expansion into the United States.

The funding round was led by Geoff Tarrant, Co-Founder and former Executive Chairman of Payapps. Tarrant, who has a history with the company, commented: "As a shareholder for more than 5 years, I have seen the great business James, Huw and the Fresho team have built over that period. I am excited by the opportunity Fresho has to improve the way the fresh food industry operates. The software platform Fresho has built together with recent AI advancements will provide benefits for all participants in the fresh food market. I look forward to joining the board of Fresho as part of my further investment in the recently completed capital raising."

Fresho's system offers solutions to the traditionally chaotic process faced by fresh food wholesalers when managing orders from restaurants, helping to streamline operations significantly. The platform has facilitated over 30 million orders to date, reflecting its growing influence in the market.

James Andronis, Co-founder and CEO of Fresho, highlighted the importance of the funding success: "We are pleased to have closed this round in a challenging fundraising environment. This speaks to the size of the opportunity, and to our record of consistent growth and capital management to date. Fresh food distribution has been traditionally slow to adopt technology, but a confluence of factors are causing this to change. These include margin pressures, skills shortages and questions of succession in family-owned firms. As a result, we are seeing unprecedented interest in how technology can drive efficient operations, better customer service, and improved work/life balance for owners and managers."

The company aims to utilise this latest injection of capital to boost its investment in artificial intelligence and other emerging technologies, furthering its operations in existing markets and moving into the US. Huw Birrell, Co-founder and COO noted, "This funding marks an exciting new phase for us as we double down on our commitment to reshape the fresh food supply chain with innovative tech. By investing in AI and emerging technologies, we're not just enhancing operational efficiency; we're enabling our customers to stay ahead in a rapidly evolving market. As we expand across our existing markets and enter the US, our focus remains on pioneering solutions that help fresh food wholesalers deliver outstanding service with speed, precision, and insight."

The effectiveness of Fresho's platform is evidenced by its adoption by prestigious culinary establishments, including Michelin-starred venues and major restaurants in cities like London and New York. Ali Ahment, Owner of Adams Fruit & Veg Wholesale, reported improved efficiencies: "Finally after 12 years of trying to develop or buy a usable online system, we met the Fresho people and got what we always wanted. Our customers can now order and pay online – it's super simple to use and has saved us heaps of time and money already."

Industry experts have voiced support for such digital transformations. A Deloitte report recommends updating legacy systems to enhance food supply chain management, asserting that this approach provides "the flexibility and scale that improve visibility and process efficiencies that provide exponential benefits."

Fresho's current plans include establishing a physical presence in the US market by 2025, building on its engagements with customers in states such as Texas, New York, and California. The company's strategic expansion and technological advancements aim to benefit all stakeholders involved in the fresh food market, aiming for a sustainable impact on the industry.