Melbourne-based technology start-up Fresho has secured A$17 million in funding to combat global food waste, which costs the economy US$940 billion annually.
Founded in 2015 by James Andronis and Huw Birrell, the company aims to streamline the fresh food supply chain, leveraging artificial intelligence (AI) to reduce inefficiencies and waste at the wholesale level.
Fresho’s platform replaces the manual, error-prone process of processing orders, often received via email, text and even fax.
By automatically converting these inputs into structured data, the system enables wholesalers to fulfil orders with increased accuracy and efficiency while allowing restaurants to access real-time pricing and stock availability.
“The fresh food wholesale sector faces significant inefficiencies in managing overnight orders,” said Andronis.
“Our solution transforms all order formats into sales orders, reducing errors and the need for night-shift staff, while also cutting food waste caused by excess purchasing and ordering mistakes.”
With more than 30 million orders processed since its inception, Fresho’s technology has reportedly reduced wastage by up to 40% for some suppliers.
“Many suppliers have reported virtually eliminating waste, thanks to the real-time visibility our platform provides,” Andronis noted.
The funding round, led by investor Geoff Tarrant, values Fresho at A$120 million and will support its expansion into the United States.
Tarrant, who co-founded and chaired Payapps before its acquisition by Autodesk (NASDAQ:ADSK) for US$600 million, will join Fresho’s board of directors.
Fresho’s focus on innovation aligns with the broader fight against food waste, which accounts for 10% of global greenhouse gas emissions, according to OzHarvest.
Chief operating officer Huw Birrell emphasised the company's mission to lead the fresh food industry in sustainability and efficiency, saying, “By investing in AI, we’re empowering wholesalers to stay ahead in a rapidly evolving market.”