‍What can Freshflow teach us? Be problem-first, not tech-first – and stay agile 

In my opinion, Freshflow’s under-the-radar execution (no flashy PR, just results) is a masterclass in B2B SaaS for traditional industries. 

Its success stems from being problem-first, not tech-first, and having a relentless focus on solving a critical - if unexciting - pain point: food waste in grocery retail. Food waste is a ~1B ton CO2e/year problem, and Freshflow’s proposition marries sustainability with hard cost savings for retailers - a rare “double bottom line”.  

The company’s product has always remained focused on solving operational challenges its retail customers face: legacy systems and low-margins. It has also remained vertical-specific, using its AI-powered, real-time inventory optimisation to solve a niche problem - fresh food waste - rather than developing a generic AI tool to sell into retailers. This helped it stand out from competitors.

Another key factor is that Freshflow managed to be focused while remaining agile – a tricky balance to achieve. The company has made a pragmatic pivot since launching, based on recognising customer needs. For example, they started out with forecasting, then expanded into near-full automation after realising store managers needed automated inventory optimisation.

Lessons for scaling in traditional sectors: smart sales motion = rapid ARR growth  

 
Using these tactics, Freshflow built a product that customers love. The company has seen hypergrowth in 2024-2025 after delivering hard ROI  - reduced waste and increased margins - for Tier-1 retailers such as German retailer EDEKA. Through automating daily ordering decisions for fresh produce, Freshflow demonstrated average waste reductions of around 20% and revenue increases of ~2-5% for early clients. Inbound enquiries then started pouring in, seeing ARR surge from zero to 7-digits inside a year. 

The team’s choice of a pilot-to-scale motion was also pivotal here. Avik and the team landed small wins, then expanded within accounts - something that is critical in slow-moving industries like retail. 

Opting for a metric-driven sales approach was also key. By focusing on hard $ savings  - e.g., “X% waste reduction in 6 months” - they were able to unlock customer budgets. 

Another nice move was one they could only make due to being hyper aware of their customer. Avik realised that change management matters in traditional sectors, so chose to offer training and support to reduce friction for supermarket employees adapting to Freshflow’s platform. 

Authentic founder passion and grit

Freshflow’s traction is in large part thanks to the technical depth and hustle mindset of the company’s founder, Avik Mukhija. 

Avik is a trained AI/ML engineer who worked on his MA thesis on the shop floor with fresh product managers. He has since spent years making continuous on-the-ground store visits, taking learnings to continually refine Freshflow’s models. This “skilled boots-on-the-ground” approach meant that Freshflow realised retailers would need a solution that slotted into existing tech stacks, and prompted the company to lean into focusing on APIs and ease of deployment. 

From an investor perspective, Avik’s transparency (e.g., clear KPIs and challenges he relentlessly sends every month) and agility in feedback loops have also been key. They’ve made it easy for us to plug in where needed, particularly on hiring and go-to-market support.

What’s next? Tapping into a massive market at the right time

We’re confident that this is just the start for Freshflow. Their TAM is ~€4bn in Europe alone, and the company has managed to crack a hidden complexity in the European retail space. Due to its AI-powered, real-time software, Freshflow’s platform can quickly adapt to regional differences, such as differing retail habits between Germany and Southern European countries. This means its scope is genuinely global.  

Scaling Freshflow’s “retail OS” beyond fresh goods could also be transformative. The company plans to use its fresh funding to expand into adjacent categories including dairy, meat, and bakery - and to facilitate distribution center (DC) ordering. 

Retailers around the world are facing inflationary cost pressures and urgently need efficiency tools to protect margins. Freshflow offers an easy-to-implement, affordable, best-in-class solution. I’m proud to support them, and - as I say to Avik - I am continually impressed by his grit, drive, and dedication to solve an unnecessary climate problem: food waste. Freshflow is building something sustainable - in both senses of the word.

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Tim is a serial entrepreneur – Sedo.com, Eyeo (Adblock Plus), Saas.group ( 20+ brands and $70 million+ ARR) - and climate investor.  He is a World Fund co-founder and General Partner, and previously backed companies including Ecosia, gridX, Zolar, Pachama and CarbonCloud. 

‍Tim has supported Freshflow since 2022. In this article, he dives into why the startup has seen a period of hypergrowth and what climate tech companies can learn from their approach – from relentless focus on solving a critical pain point, to investing years in deeply understanding customer workflows, and executing a winning pilot-to-scale motion.