Mozare3, an Egyptian agricultural technology firm, has secured over $1 million in a pre-seed round led by Algebra Ventures and Disruptech. EFG-EV and a few angel investors were among the investors in the round.
Hussein Abou Bakr and Tamer El-Raghy founded Mozare3 in 2020 with the goal of giving access to markets and loans to Egypt’s roughly 20 million small farmers.
It also seeks to create Egypt’s first digital community for farmers, with a network of subject matter experts to provide agronomy support.
Mozare3 assists farmers in selling their crops by partnering with institutional purchasers such as frozen vegetable processors, major wholesalers, and retailers.
It enters into offtake agreements with farmers to purchase the future output of their crops at a set price for the institutional buyer.
It assists farmers in reducing the danger of not being able to find a buyer when the harvest is ready to be sold, while also allowing them to focus on what they do best: farming, and leaving the rest to Mozare3.
“The agriculture market faces price opacity, supply fragmentation, and significant levels of fraud, to name a few challenges,” Tarek Assaad, Managing Partner at Algebra Ventures, said. We’d been considering making an agritech investment for a while and are thrilled to be able to help Hussein and Tamer seize this huge potential. The Mozare3 team’s vision and passion inspired us, and we’re delighted to be a part of their journey.”
“We are very thrilled to lead this round for Mozare3, a vast, underserved segment and extremely seasoned management team,” said Mohamed Okasha, Managing Partner at Disruptech. We’ve been working closely with the Mozare3 founding team since the company’s inception as Egypt’s first agri-fintech firm. We are convinced that Mozare3 will digitally alter this sector and provide farmers with creative access to finance and markets.”
Hussein Abou Bakr, Mozare3’s co-founder and CEO, revealed that the company presently has offtake agreements with 100 farmers and three significant institutional purchasers.
“By the end of 2022, we want to create a network of up to 2,500 farmers [with whom we have offtake agreements] and 25 to 50 institutional purchasers. Farmers with whom we do not have offtake agreements will benefit from Mozare3’s app, which will enable them to purchase a variety of items and receive online advice from our in-house experts. “With the app, we hope to reach 10,000 farmers in the next eighteen months,” Hussein said.