Freshflow Funding News – German Based Freshflow Raises €6.5 Mn To Optimise Fresh Food Supply Chain With AI

The round was co-led by World Fund, Capnamic, and Venture Stars, with Caesar Ventures also participating.

The funding follows Freshflow’s rapid growth—reaching 7-digit annual recurring revenue (ARR) and securing partnerships with major retail franchises like Carrefour, Edeka, Intermarché, and L. Stroetmann.

Avik Mukhija, Freshflow Founder and CEO, said: “We’re seeing incredible demand from retailers, because we offer the first AI in Europe specifically built for the needs of their fresh departments. Having now proven our system across a large number of stores with 93% order acceptance and glowing reviews from fresh produce managers, demand from retailers is accelerating further.

“With the support of our investment partners, we can now build on this traction and serve retailers across Europe, moving one step closer to our vision to achieve a just-in-time, lean and climate-friendly fresh food supply chain.”

Freshflow is the first European AI/ML platform focused specifically on reducing waste in ultra-fresh grocery items. These products often come with challenges like short shelf lives, inconsistent quality, loose packaging, and reliance on many local suppliers.

The platform automates daily ordering decisions for fresh produce, helping retailers cut waste by around 20% and boost revenue by 2–5%.

Read Also - Ontik Funding News – London Based Ontik Raises $3.7M Fund For B2B Trade Credit Automation

The grocery retail sector contributes to about 5% of global food waste, throwing out over 4.5 million tonnes each year—mainly due to poor stock planning. If retailers order too little, they lose sales. If they order too much, it results in waste and lost profits.

Despite this, many retailers still depend on gut feeling or generic software that doesn’t suit the complexities of fresh food, leading to frequent over-ordering and spoilage. Freshflow solves this with a tailored, AI-driven approach.

Nadine Geiser, Principal at World Fund, said: “Until now, no one has offered European retailers a cost-effective and easy-to-implement solution to avoid fresh food waste. Freshflow is that solution. 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 into Freshflow and its talented team.”

Freshflow uses advanced probabilistic AI to tackle the unique challenges of fresh grocery supply chains. Unlike standard retail forecasting tools, Freshflow adjusts to real-world conditions—like store layout, temperature, seasonal patterns, and spoilage risk—to make smarter, more accurate ordering decisions.

Bastien Gelin is CEO of Groupe Yabe, which is among the largest Carrefour franchisers in France and has deployed Freshflow in all its stores: “We have been working with Freshflow’s AI for 9 months. Thanks to the application and Freshflow’s team, we have radically improved our process in the fresh produce departments. We have seen strong results: more inventory turns, less waste and more freshness.”

Freshflow says the European fresh produce market is worth over €311 billion, with a total addressable market (TAM) of about €4 billion for its solution in Europe.

With the new funding, founder Avik Mukhija plans to expand into other fresh categories like dairy, meat, and bakery. The company will also roll out new features for distribution center (DC) ordering, which have already been tested successfully.

Freshflow aims to hire 15 new team members in 2025 across its Berlin and Paris offices, growing its current 24-person team to 50 by 2026, while continuing its expansion across Europe.

Markus Merz, Investment Manager at Capnamic, said: “The Freshflow team’s customer obsession knows no bounds and left a lasting impression on us as an investor. While their strong traction came as no surprise, it nonetheless exceeded our expectations and prompted us to further deepen our commitment to this partnership. The team is primed to scale, and we’re excited to support them on their journey.”

About Freshflow

Freshflow, founded in 2021 by Machine Learning expert Avik Mukhija, has raised €8.7 million so far. The idea for the company came after Mukhija spent months working in grocery stores during his Master's placement.