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Fresho-a fresh food wholesale startup charged with modernizing the industry-closed a $17 million Series B funding round. Fresho had raised $50 million in total since its inception, in 2015, by seafood wholesaler James Andronis and tech entrepreneur Huw Birrell. Fresho works to overturn the traditional ways of processing orders in this sector. Led by Geoff Tarrant, one of the founders at Payapps, the round saw other investors participating. Fresho raised £8 million in its Series A funding in 2022.
The round will further support the company’s expansion into new markets, particularly in the United States, and further developments in its AI capabilities. To date, it has processed over 30 million orders, 10 million in the past year alone, positioning Fresho as a key player in the transformation of how fresh food is distributed from suppliers to restaurant kitchens.
It addresses some unique challenges that the fresh food industry has in terms of time-sensitive orders, fluctuating prices, and a very high standard of product quality. This platform, building on AI, processes orders coming from multiple channels- emails, SMS/IM, voicemails, converting them into structured data in real time.
The marketplace-like interface also allows the platform to give restaurant live prices, real-time availability of products, and tools to improve food cost management. Suppliers, on the other hand, benefit from automated order processing through dashboards, which eliminates the extra efforts and need for manual data entry, reducing unsociable hours of work. This has a direct impact on bringing better accuracies and efficiencies to suppliers and restaurants, leading towards better supplier-restaurant relationships.
Its solution is so appealing that it attracted prominent clients, including London’s Michelin-starred Wild Honey and New York City’s three-Michelin-star Le Bernardin. Suppliers like the UK’s Adams Fruit & Veg Wholesale have also seen substantial time and cost savings since coming on board with Fresho’s platform, showing that its solution is practical and efficient in the supply chain.
Fresh food delivery and wholesale businesses would highly benefit from the scope of technological innovation in this market with increased demand for faster and efficient order processing. As Deloitte considers modernization of legacy supply chain systems as the only way to reach greater levels of scalability and efficiency, Fresho’s AI-based platform represents a solution that is in tune with this need not only by streamlining operations but also by helping on the sustainability side, reducing food waste through effective inventory management and order accuracy.
The funding will further allow Fresho to expand in the UK, Australia, New Zealand, and Ireland, with expansion plans in the U.S. The company aims to extend its AI-driven tools, providing it with a better leverage to optimize every aspect of supply chain operations.
Huw Birrell, Fresho’s COO, emphasized the importance of investing in emerging technologies: “By investing in AI, we’re enhancing operational efficiency and ensuring our customers stay ahead in an increasingly competitive and fast-evolving market.”
Overcoming Industry Resistance to Change
Despite these successes, there is a challenge in the diffusion of the Fresho model. The traditional fresh food wholesale industry has been highly labor-based and reliant on operational processes, so transition to such models can be sensitive to non-linear learning for some firms. Furthermore, operation of such advanced platforms requires technical skills, and industries that are not teeming with tech-loving employees may also present significant barriers.
However, experts feel that platforms like Fresho will soon be a necessity as the pressure to maintain profit margins increases and skills shortages become more common. The future of digital solutions for food wholesaling is certain to change rapidly, and Fresho will be at the forefront of this transition.
Fresho’s innovative platform represents a major shift in the fresh food wholesale industry, addressing long-standing inefficiencies and reducing waste through AI-driven technology. The platform not only streamlines the order process but also helps businesses achieve greater sustainability by minimizing food waste and improving inventory management.
It will make a difference in the global food supply chain as Fresho scales up and develops more its AI capabilities. It can be seen as innovative in operation, innovation, and sustainability, potentially transforming fresh food wholesale into something more conducive to the future. Fresho offers scalable high-tech solution that positions it as a game-changer in an industry that needs so much disruption.
