Fungu’it, a French foodtech startup, announced a €4 million funding round. The investment was led by Asterion Ventures. Evolem and UI Investissement via Oser BFC also participated. The funds will support industrial production growth. Fungu’it aims to strengthen its position in the natural flavor market.
The company uses fungi to produce natural flavorings. Its process involves solid-state fermentation of agricultural by-products. These include flaxseed, sunflower press cakes, and legumes. The method is sustainable and resource-efficient. It reduces water and energy use compared to traditional production.
Fungu’it has developed two main flavor ingredients. One is a meaty umami flavor for plant-based foods. It improves the taste and appeal of meat alternatives. This can help reduce reliance on animal farming and lower environmental impacts. The other is a chocolate flavor that can replace up to 25% of cocoa in recipes. This helps decrease dependence on cocoa, which is linked to deforestation and biodiversity loss. The flavoring supports sustainable cocoa farming practices.
“Our technology revolutionises the creation of natural, sustainable, and high-performance flavorings, while upcycling often wasted by-products. This circular, innovative approach is established as a key driver of transformation for the agro-food sector, moving towards a healthy, long-lasting and affordable diet,” says Anas Erridaoui, CEO and co-founder of Fungu’it.
The market for natural flavorings is rapidly growing. In 2022, France’s flavoring industry earned €730 million. The sector has high profit margins and low industrial costs. Increasing demand for natural ingredients favors innovations like Fungu’it’s.
The new €4 million funding will enable the company to build an industrial pilot plant. It will test and patent its process, aiming for several dozen tons of annual production. Fungu’it also plans to expand its sales team and promote its flavorings, especially in plant-based foods.
