Startup of the Week: Right Farm carts off its waste all the way to the bank, raises $2.8 million

The company provides an all-in-one solution for restaurants that have just opened their first branch to support them with micro-lending, financial services, and food supply that was not available to them before. (Supplied/AFP)
The company provides an all-in-one solution for restaurants that have just opened their first branch to support them with micro-lending, financial services, and food supply that was not available to them before. (Supplied/AFP)
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Updated 26 June 2022

Startup of the Week: Right Farm carts off its waste all the way to the bank, raises $2.8 million

The company provides an all-in-one solution for restaurants that have just opened their first branch to support them. (Supplied)
  • The company recently raised $2.8m from investors, including ADQ’s venture platform and Enhance Ventures

RIYADH: $60 billion. That’s the amount the Middle East and North Africa region could have saved if it had not wasted its food, according to the Food and Agriculture Organization.

While it just needs anyone with the right mind to be concerned about the enormous waste, Dubai-based Right Farm has turned its crusade against food wastage into a business model.

The e-commerce and supply chain B2B company picks disfigured fruits and vegetables from its produce and reroutes them to pulp-making firms instead of the garbage.




Our model is focused on sourcing at the right price at the right time, the right products and specs that our demand-side needs and
delivering those orders to our demand says, Elie Skaf, CEO and co-founder at Right Farm.

For instance, a weird-looking carrot may stand out like a sore thumb in a sophisticated dinner spread, but why throw the root vegetable if one can prepare a smoothie out of it?

“Our model is focused on sourcing at the right price at the right time, the right products and specs that our demand-side needs and delivering those orders to our demand side,” Elie Skaf, CEO and co-founder at Right Farm, told Arab News.

Making best out of waste

The company sources food from farmers and supplies them to restaurants, hotels, catering companies, cloud kitchens and other food businesses across the UAE.

But, what makes them different is they pick nutritious yet disfigured greens and sell them for a fraction to retailers or trade it with food processors who may want to use them as a garnish.

FASTFACTS

• While it just needs anyone with the right mind to be concerned about the enormous waste, Dubai-based Right Farm has turned its crusade against food wastage into a business model.

• The e-commerce and supply chain B2B company picks disfigured fruits and vegetables from its produce and reroutes them to pulp-making firms instead of the garbage.

How does that work? The company has struck partnerships with a couple of other startups that make better use of food waste. Not just that. The company has tied up with institutions that procure the refuse and use it as compost.

“We also have partners who collect our and our customer’s waste and feed them to black soldier flies. They then transform these flies and their larvae into protein and sell them as livestock feed; we get a revenue share,” Skaf added.

The company also provides financial solutions for restaurants with revenue on escrow because they get paid on credit cards or through food platforms.

“This is where we come in. We said we’re going to do a proper credit risk assessment on every account that joins us. And whoever qualifies would get immediate access to some sort of credit financing for their orders,” Skaf explained.

Not just space of waste

The company provides an all-in-one solution for restaurants that have just opened their first branch to support them with micro-lending, financial services, and food supply that was not available to them before.

Right Farm currently has 200 institutional customers in the UAE. However, it has lined up an ambitious expansion plan, targeting 300 customers in Saudi Arabia and venturing into other markets in the Middle East and North Africa.

As the UAE imports 90 percent of its fruits and vegetables, Skaf is exploring the Egyptian market as they are currently importing goods from the country to satisfy the demand in the UAE.

“Our trip to Egypt was purely supply-focused; we wanted to build relationships with farms and solidify our network of farms in Egypt. And that’s sort of a first step to launching a demand and supply market like Egypt,”

Right Farm last month raised $2.8 million from investors, including Abu Dhabi state holding company ADQ’s venture platform and Enhance Ventures. The company plans to use the proceeds to support its technology development and growth plans.


Saudi fast-food chain franchiser Alamar's profits rise to $17m on strong sales

Saudi fast-food chain franchiser Alamar's profits rise to $17m on strong sales
Updated 17 sec ago

Saudi fast-food chain franchiser Alamar's profits rise to $17m on strong sales

Saudi fast-food chain franchiser Alamar's profits rise to $17m on strong sales

RIYADH: Domino's Pizza regional operator Alamar Foods Co. recorded a 10 percent profit increase after seeing significant sales growth in the first half.

Alamar’s profits jumped to SR67 million ($17 million) during the first half of the year, compared to SR60.9 million in the first half of 2021, according to a bourse filing.

The profit was coupled with a 31 percent increase in revenues to reach SR527 million at the end of the first six months of 2022.

The results were driven by higher sales, partially offset by higher raw material costs due to global inflation, as well as higher expenses related only to the second quarter.


Here’s what you need to know before Tadawul trading on Wednesday

Here’s what you need to know before Tadawul trading on Wednesday
Updated 9 min 41 sec ago

Here’s what you need to know before Tadawul trading on Wednesday

Here’s what you need to know before Tadawul trading on Wednesday

RIYADH: Saudi stocks settled flat on Tuesday, as news over potential global inflation spurred investor worries, while the market continued to see positive earnings reports.

The main index, TASI, ended the session flat at 12,545, while the parallel market Nomu edged 0.34 percent lower to finish at 22,034.

Stock market gains across the whole region were subdued, amid volatile oil trading due to recession concerns.

Abu Dhabi and Bahrain lost 0.2 percent, while Dubai, Oman, Qatar, and Kuwait advanced between 0.2 and 0.5 percent.

Outside the Gulf, the Egyptian index EGX30 closed 0.7 percent lower.

Brent crude reached $93.31 a barrel by 9:16 a.m. Saudi time on Wednesday, while US West Texas Intermediate traded at $87.56 a barrel.

Stock news

ACWA Power Co. said it will sign today a $2.4 billion deal with Uzbekistan’s Ministry of Investment & Foreign Trade for a 1,500-megawatt wind project

Amana Cooperative Insurance Co.’s net losses narrowed by 50 percent to SR31 million in the first half of 2022

Wataniya Insurance Co. was awarded an SR54 million insurance contract with Samsung C&T Corp. for the NEOM spine water infrastructure

Wataniya Insurance saw its losses widen by 44 percent to SR37 million in the first half of 2022

Anaam International Holding Group Co.’s board approved liquidating two fully owned subsidiaries

Alinma Tokio Marine Co. turned into a profit of SR2.4 million in the first half of 2022

Saudi Enaya Cooperative Insurance Co.’s loss before zakat narrowed by 53 percent to SR14 million

Arabian Centres Co., known as Almrakez, reported a higher profit of SR128 million for the second quarter of 2022

Salama Cooperative Insurance Co. received shareholders’ approval to reduce its capital by 60 percent to SR100 million

Al Jouf Cement Co. appointed Abdul Karim Al-Nuhair as CEO following Jamal Al Amer's resignation

Naseej for Technology Co. reported SR7.7 million in profits for the first half, down 22 percent from the previous year

Al Moammar Information Systems Co. signed an SR39 million contract with the Saudi Ministry of Environment, Water, and Agriculture 

Alamar Foods Co. reported an SR66 million net profit in the first half of 2022, a 10 percent increase from the first half of last year

Saudi Tadawul Group Holding Co. entered a non-binding deal to acquire a 51 percent stake in financial technology provider Direct Financial Network Co.

National Co. for Learning and Education Co. announced the opening of the Trbyh Namouthajiya International Schools campus in Dhahran

Banan Real Estate Co. saw its first-half profit grow 16 percent to SR15 million

Leading franchise retailer Fawaz Abdulaziz Alhokair Co. reported a 26 percent profit surge to SR58 million for the second quarter of 2022

Alhokair said that its accumulated losses have been cut to zero, following a 45.3 percent capital reduction

Al Yamamah Steel Industries Co.’s profits were down 58 percent to SR70 million during the nine months ending June 30

Saudi Research and Media Group posted a 24 percent rise in half-year profit to SR281 million

Calendar

August 17, 2022

Saudi Networkers Services Co. will start trading its shares on Nomu

August 18, 2022

Rawasi Albina Investment Co. will start trading its shares on Nomu


Retail operator Almrakez posts higher profit despite fire outbreak losses

Retail operator Almrakez posts higher profit despite fire outbreak losses
Updated 43 min 2 sec ago

Retail operator Almrakez posts higher profit despite fire outbreak losses

Retail operator Almrakez posts higher profit despite fire outbreak losses

RIYADH: Arabian Centres Co. announced a higher second-quarter profit of SR128 million ($34 million), despite incurring an impairment loss on investment properties following the partial fire at Mall of Dhahran.

The impairment loss on investment properties reached SR25 million, the company which trades in the name of Almarkez said in a bourse filing.

The Saudi retail operator revenue grew by 10.2 percent year-over-year to book SR563 million, primarily due to an increase in net rental earnings.


Oil Updates — Crude edges up; Japan raises gasoline subsidy; Venezuela to aid the reconstruction of damaged Cuban port

Oil Updates — Crude edges up; Japan raises gasoline subsidy; Venezuela to aid the reconstruction of damaged Cuban port
Updated 17 August 2022

Oil Updates — Crude edges up; Japan raises gasoline subsidy; Venezuela to aid the reconstruction of damaged Cuban port

Oil Updates — Crude edges up; Japan raises gasoline subsidy; Venezuela to aid the reconstruction of damaged Cuban port

RIYADH: Oil prices rose on Wednesday, recovering from six-month lows hit the previous day, as a larger-than-expected drop in US oil and gasoline stocks reminded investors that demand remains firm, if overshadowed by the prospect of a global recession.

Brent crude futures rose 56 cents, or 0.6 percent, to $92.90 a barrel by 0415 GMT. 

West Texas Intermediate crude futures climbed 62 cents, or 0.7 percent, to $87.15 a barrel.

The contracts slumped about 3 percent on Tuesday as weak US housing starts data spurred concerns about a potential global recession.

Japan raises gasoline subsidy for oil distributors

Japan raised its gasoline subsidy for oil distributors to 33.8 yen (25.2 cents) a liter for the seven days from Thursday, compared with 31.4 yen a week earlier, the industry ministry said on Wednesday.

The temporary subsidy program was adopted in January to cushion a blow from high crude prices because of tight global supplies, while the Ukraine conflict that began on Feb. 24 added further pressure.

Venezuela to support reconstruction of Cuban port damaged by oil fire

Venezuelan President Nicolas Maduro said on Tuesday that Venezuela would support Cuba in the reconstruction of its only supertanker port in Matanzas, which was partially destroyed by a fire after lightning struck one of its crude tanks.

Cuba has long relied on the 2.4 million-barrel Matanzas terminal, about 130 km from Havana, for most imports and storage of crude and heavy fuel oil.

Maduro directed Venezuela’s oil minister and the president of state-run PDVSA to get in touch with the corresponding Cuban authorities “to begin the design of the reconstruction of the supertanker yard,” he said in a speech honoring the Venezuelan firefighters sent to combat the blaze.

Mexico also sent personnel to put out the fire.

“We are going to design where it will be built, where the loading yard will be and begin the construction,” Maduro said.

Australia’s Santos approves $2.6bn Alaska oil project

Santos Ltd. said on Wednesday it will move ahead in developing a $2.6 billion Alaskan oil project, a surprise decision for the market that drove its shares down despite the Australian energy producer posting a record first-half profit.

The company also said it was in advanced talks with shortlisted parties to sell a 5 percent stake in its prized asset, PNG LNG in Papua New Guinea, and reap an estimated $1.5 billion, which analysts expect will be used to fund the Pikka project in Alaska.

Santos CEO Kevin Gallagher said Pikka, co-owned by Spain’s Repsol SA, was “the right project at the right time in the right location,” forecasting a strong 19 percent internal rate of return based on an oil price of $60 a barrel.

“Low-carbon oil projects like Pikka Phase 1 respond to new demand for OECD supply and are critical for global and United States energy security that has been highlighted since the Russian invasion of Ukraine,” Gallagher said in a statement.

Analysts had thought Santos would sell its 51 percent stake in Pikka rather than go ahead with the 80,000 barrels per day project as it has its hands full working on a major gas project and potential oil development in Australia.

However, Santos said on Wednesday the oil development in Australia, Dorado, would not go ahead this year due to inflationary pressures and supply chain uncertainty.

Shell to shut Gulf of Mexico crude pipes for 2 weeks

Shell on Tuesday said it plans to shut for two weeks in September a key crude oil pipeline in the Gulf of Mexico that supplies oil to Louisiana refineries.

The Odyssey and Delta crude pipelines in September will be shut for planned maintenance early-to-mid September, Shell said in a statement.

The pipelines transport Heavy Louisiana Sweet crude from offshore oilfields and switching to other pipelines is not an option, Shell added.

The Odyssey pipeline in the eastern Gulf of Mexico has 220,000 barrels per day capacity and is connected to the Delta pipeline with deliveries into terminals in Louisiana and to Shell’s Norco refinery, according to the company’s website.

(With input from Reuters) 


Saudi insurers report improved first-half profits on lower claims

Saudi insurers report improved first-half profits on lower claims
Updated 17 August 2022

Saudi insurers report improved first-half profits on lower claims

Saudi insurers report improved first-half profits on lower claims

RIYADH: Major Saudi-listed insurers released first-half earnings results on Wednesday, with three reporting improved profits due to lower claims.

Alinma Tokio Marine Co. turned in a profit of SR2.4 million ($639,339) in the first half of 2022, erasing over SR3.2 million in losses from the first half of 2021, according to a bourse filing.

Saudi Enaya Cooperative Insurance Co. managed to narrow its losses by 53 percent to SR14 million, while Amana Cooperative Insurance Co. narrowed its losses by 50 percent to SR31 million.

Meanwhile, Wataniya Insurance saw its losses increase by 44 percent to SR37 million in the first half of 2022, bucking the trend, owing to a decrease in net underwriting income.