Barakah, a food delivery startup based in Saudi Arabia, has raised $300K in a Pre-SEED round from Alriyadah Investments. With its headquarters in Jeddah, Saudi Arabia, Alriyadah Investments is a family-owned closed real estate and energy development fund. The startup provides a green discount on their surplus items using an innovative mobile app in real time, with the goal of reducing food waste in restaurants, bakeries, hotels, and supermarkets.
In addition to empowering businesses to increase profits, it also encourages customers to join the global movement against food waste.
The business explained that sustainability and addressing the widespread and systemic problem of food waste in their local community were the driving forces for the creation of Barakah. Food waste accounts for 40% of all food production, or $1.2Trn globally and SAR 40Bn in Saudi Arabia, or 10% of global greenhouse gas emissions. Another significant factor in the success of the effort was the Islamic teachings, which stressed the need of food preservation. In Arabic, the word “barakah” means blessing.
In order to fill a glaring market gap and address a significant socioeconomic problem, Barakah intends to use technology as a solution. The first discounted surplus market in Saudi Arabia is being created by this gap so the company targets both consumers and businesses to market their surplus by partnering with restaurants, bakeries, cafes, hotels, buffets, and grocery shops, c reating a new revenue source for our vendors. The app appeals to users who value quality and are environmentally aware.
For companies in the food service sector, the app delivers a real-time surplus management tool. Restaurants post their unsold portions on Barakah’s surplus market where customers can easily browse the map and find nearby discounted meals from their preferred stores, preventing these things from going to waste.