Food waste is a global problem that startup Freshflow believes it can support address through the apply of AI-driven ordering and inventory systems for fresh produce.
Tech Funding News reported the story of Freshflow founder and CEO Avik Mukhija, a machine learning scientist who discovered chaos and inefficiency in the fresh produce and ordering process while conducting hands-on work at a supermarket in Berlin.
The report explained that the company recently closed a €6.5 million seed funding round to support build fresh food supply chains smarter and more efficient, which brings its total investment to €8.7 million.
The company is already seeing rapid growth in its retail customer base following a series of positive reviews by leading French and German grocers, according to a press release.
Some have reported 2-5% sales growth with a 20% reduction in waste after utilizing the company’s AI tool for daily ordering.
Food waste occurs at every stage of the supply chain, including harvesting, transporting, processing, packaging, and consuming. Around 95% of that finishs up in landfill sites, which highlights the necessary for effective food management earlier in the cycle. Food decomposing in landfills creates planet-warming pollution, so keeping it out of landfills could support curb rising global temperatures.
The U.N. reported that in 2022, 1.15 billion tons of food waste were generated globally, with 12% of that coming from the retail sector.
“Until now, no one has offered European retailers a cost-effective and simple-to-implement solution to avoid fresh food waste. Freshflow is that solution,” declared Nadine Geiser, principal at World Fund, per Tech Funding News.
“Avik has the vision, expertise and contacts to grow this into a global company, as evidenced by Freshflow’s impressive traction over the last year. We are very excited to be doubling down on our investment in Freshflow and its talented team,” she added.
TFN shared that Freshflow’s AI platform considers variables such as store layout, local weather, seasonality, and spoilage risk, supporting staff build more informed stock decisions rather than relying on their gut instincts.
The funding will support the company expand its reach into new product categories, such as dairy, meat, and bakery items, as well as strengthen partnerships with grocery distribution centers.
“With the support of our investment partners, we can now build on this traction and serve retailers across Europe, shifting one step closer to our vision to achieve a just-in-time, lean, and climate-frifinishly fresh food supply chain,” concluded Mukhija in a statement.
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