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AI Startup Freshflow Raises €6.5M to Fight Food Waste

AI Startup Freshflow Raises €6.5M to Fight Food Waste AI Startup Freshflow Raises €6.5M to Fight Food Waste
IMAGE CREDITS: FRESHFLOW

Freshflow, a Berlin-based AI startup, has raised €6.5 million in seed funding to expand its mission of cutting food waste in grocery stores across Europe. Backed by World Fund, Capnamic, Venture Stars, and Caesar Ventures, the round brings the company’s total funding to €8.7 million.

At the heart of Freshflow’s platform is a machine learning-powered system that helps retailers better manage ultra-fresh food like fruits and vegetables—items that are notoriously difficult to forecast and prone to spoilage. With supermarkets in Europe discarding an estimated four million tonnes of food each year, the cost of waste is both an environmental disaster and a major profit drain—slashing margins by up to 50%.

Freshflow aims to change that by offering a plug-and-play AI solution that integrates with existing systems and turns outdated, gut-feel inventory management into a lean, just-in-time process. According to the company, retailers using its technology have already seen 20%+ reductions in food waste and 2–5% increases in revenue.

From Supermarket Floors to Climate-Focused Innovation

The inspiration behind the Freshflow AI food waste solution came from a very hands-on experience. Founder and CEO Avik Mukhija, a machine learning scientist, observed the waste problem firsthand during a Master’s placement in a supermarket. The result was Freshflow: Europe’s first AI tool built specifically for fresh food waste prevention, focusing on highly perishable and loosely packaged products.

Now, with fresh capital in hand, Freshflow plans to grow its 24-person team to 50 by 2026, expand into new categories like meat, dairy, and baked goods, and scale operations across more distribution centers throughout Europe.

Major retailers, including Carrefour, Edeka, and Intermarché, have already adopted Freshflow’s AI platform—and the feedback has been strong. Bastien Gelin, CEO of Groupe Yabe (a leading Carrefour franchiser in France), said the rollout led to “more inventory turns, less waste, and more freshness” across stores.

The platform analyzes everything from weather and seasonality to store layout and spoilage risk, helping staff make smarter stocking decisions. With a total addressable market of €4 billion in Europe’s grocery sector and a global fresh produce market valued at $350 billion, Freshflow sees significant growth potential.

As Nadine Geiser of World Fund put it, “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.”

Mukhija added, “Retailers are coming to us because we offer the first AI built specifically for their fresh departments. With 93% order acceptance across stores and glowing feedback from produce managers, demand is growing rapidly. With this funding, we can help even more retailers cut waste and improve margins—while building a smarter, climate-friendly supply chain.”

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