Startups

Riyadh Based Grove Announces Closing of $5M Seed Funding Round Led by Outliers VC

Featured image for "Riyadh Based Grove Announces Closing of $5M Seed Funding Round Led by Outliers VC"
Summary

Grove, a Riyadh-based technology company specialized in the fresh-produce sector, has successfully closed a $5M Seed funding round led by Outliers VC with participation from a group of angel investors.

Grove, a Riyadh-based technology company specialized in the fresh-produce sector, has successfully closed a $5M Seed funding round led by Outliers VC with participation from a group of angel investors.

Founded in 2024 by Mohammed bin Ghanam and Ayman AlFifi , Grove is operating as a consumer brand in the fresh and agricultural produce sector. The company connects farms, markets, and households, operating as a vertically coordinated system rather than a loose collection of suppliers, ensuring the entire harvest finds its optimal path to value that is designed around what the actual consumer wants.

The local agricultural sector in Saudi Arabia is valued at approximately $31.5B, while imports of plant-based products reach $10.7B in 2025. Despite this scale, current local production reflects a structural gap between production standards and actual consumer needs.

This gap has led to challenges such as inconsistent quality, limited variety, and short shelf life. These issues are largely the result of supply chains that were designed over decades to prioritize long storage and transportation periods, rather than freshness, flavor, or nutritional value.

The fresh-produce sector has become shaped by short-term commercial incentives driven by intermediaries and temporary operators, rather than by the interests of farmers or consumers. This has led to practices such as premature harvesting and production decisions focused on volume rather than quality, flavor, and nutritional value.

These issues restrict farmers’ investment in better practices, diminish consumer trust, and worsen environmental impact through pesticide overuse, poor water management, and soil damage. This environment discourages new farmers and entrepreneurs, blocking the growth of higher-quality and resilient supply chains.

Grove is building a demand-driven fresh-produce model that rewards quality by aligning production, pricing, and market access from early stages through an integrated, technology-enabled supply chain. This approach improves planning clarity for farmers, delivers higher-quality, broader selection to consumers, and increases transparency while reducing food waste.

“For generations, farming was rooted in responsibility to the land and community. Over time, short-term commercial pressure has pushed practices that damage soil, water, and long-term sustainability. 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,” said Mohammed bin Ghanam, Co-founder of Grove.

“Grove started from a simple realization: when food is closer to its source and handled properly, it changes how families experience it. The real challenge isn’t farming; it’s supply chains optimized for speed over quality. Grove is building a practical, scalable alternative that proves better food can also be commercially viable and sustainable,” added Ayman AlFifi, Co-founder of Grove.

“What drew us to Grove was not just the product, but the team’s ability to rethink the relationship between farmers and the market. Their integrated approach brings quality back to the center, reconnects consumers with the source, and positions Grove as a key contributor to a more resilient and sustainable food system in Saudi Arabia,” said Mohammed AlMeshekah, Founder & GP at Outliers VC.

Related Articles

Featured image for "Pemo Wins UAE Central Bank Approval to Close the SME Financing Gap"
Startups

Pemo Wins UAE Central Bank Approval to Close the SME Financing Gap

Featured image for "Dubai Consolidates a Decade of Founder Support Into One Hub, Then Opens a New Door for First-Time Entrepreneurs"
Startups

Dubai Consolidates a Decade of Founder Support Into One Hub, Then Opens a New Door for First-Time Entrepreneurs

Featured image for "Infobip's Startup Tribe Turns Five, Freeing Founders From a Hidden Cost of Growth"
Startups

Infobip's Startup Tribe Turns Five, Freeing Founders From a Hidden Cost of Growth

Featured image for "Gyre Energy's AI Platform Turns Cold Storage Into a Flexible Power Asset"
Startups

Gyre Energy's AI Platform Turns Cold Storage Into a Flexible Power Asset

Featured image for "How 1001 Raised $30 Million to Bring Sovereign AI to Ports, Airports and Energy Grids"
Startups

How 1001 Raised $30 Million to Bring Sovereign AI to Ports, Airports and Energy Grids

Featured image for "Exclusive: Why Saudi Arabia's Startup Market Keeps Growing While the Rest of the Gulf Doesn't"
Startups

Exclusive: Why Saudi Arabia's Startup Market Keeps Growing While the Rest of the Gulf Doesn't