Riyadh-based agritech startup Grove has secured $5 million in a Seed funding round to revolutionize Saudi Arabia's fresh produce sector. Led by Outliers VC, the investment will fuel the company's mission to bridge the gap between local farms and consumers. Founded in 2024, Grove is building a vertically integrated, technology-driven supply chain designed to enhance food quality and sustainability across the Kingdom.
Addressing a Fragmented Market
The Saudi Arabian agricultural sector, valued at approximately $31.5 billion, faces a significant structural disconnect between production capabilities and consumer needs. This gap results in widespread challenges, including inconsistent product quality, limited variety, and a notably short shelf life for fresh goods. These issues stem from an outdated system that fails to meet modern market demands for freshness and nutritional value.
Decades-old supply chains, optimized for long-term storage and transport rather than quality, are the primary cause of these problems. The market has been shaped by intermediaries whose short-term commercial incentives encourage practices like premature harvesting and prioritizing volume over flavor. This environment erodes consumer trust, limits farmers' ability to invest in better practices, and contributes to significant environmental strain.
A Technology-Driven Solution
In response, Grove is pioneering a demand-driven fresh-produce model that directly connects farms, markets, and households. By operating as a vertically coordinated system, the company utilizes an integrated, technology-enabled supply chain to align production with actual consumer demand. This approach bypasses inefficient intermediaries and ensures the entire harvest finds its optimal path from farm to table.
This innovative model has already demonstrated impressive results, fostering strong customer loyalty with repeat-purchase rates approaching 48%. Furthermore, Grove's efficient system has drastically reduced food waste to below 5%, a significant improvement over industry norms. The platform provides farmers with greater planning clarity while delivering a higher-quality, broader selection of produce to consumers.
Vision for a Sustainable Future
Co-founder Mohammed bin Ghanam explained that the company aims to restore a balance between commercial pressures and environmental responsibility. "At Grove, we are restoring that balance by equipping farmers with the data, tools, and incentives needed to protect resources and build for the future," he stated. This vision focuses on empowering farmers to adopt more sustainable practices for long-term soil and water health.
Co-founder Ayman AlFifi added that the core challenge lies not in farming but in outdated supply chains. He emphasized that Grove is creating a practical and scalable alternative that proves superior food can also be commercially viable. The company's goal is to demonstrate that a system prioritizing quality and freshness can be both profitable and sustainable.
Investor Confidence and Future Growth
The investment from Outliers VC reflects strong confidence in Grove's transformative potential. Mohammed AlMeshekah, Founder and GP at the firm, noted that Grove's integrated approach reconnects consumers with their food source. He highlighted the team's ability to rethink the fundamental relationship between farmers and the market, positioning Grove as a key industry player.
The newly acquired $5 million in capital will be instrumental in scaling Grove's operations across Saudi Arabia. The funding will enable the company to expand its reach, enhance its technology platform, and strengthen its partnerships with local farmers. This strategic expansion is aimed at building a more resilient and sustainable food system for the entire region.
With its successful $5 million Seed round, Grove is poised to make a significant impact on Saudi Arabia's agricultural landscape. The company's technology-driven approach directly addresses long-standing inefficiencies in the fresh-produce supply chain, promising better outcomes for both farmers and consumers. This investment marks a critical step toward creating a more sustainable, transparent, and quality-focused food ecosystem in the Kingdom.