Fungu’it Raises €4M to Develop Fungi-Fermented Flavor Alternatives

Fungu’it, a foodtech startup based in Dijon, France, has raised €4 million to scale up its natural flavor production using fungi-based fermentation. The funding round, led by Asterion Ventures with contributions from Evolem and UI Investissement via Oser BFC, will support the company’s goal of expanding its production capacity and accelerating market entry. The company specializes in transforming agricultural by-products into natural flavors through solid-state fermentation, using filamentous fungi to create a variety of flavors, including meaty umami alternatives and sustainable cocoa substitutes. Fungu’it's fermentation process is marketed as resource-efficient, requiring less water and energy, and utilizing by-products that would typically go to waste.

With the new investment, Fungu’it plans to build an industrial pilot plant capable of producing several dozen tonnes of flavorings per year, expand its intellectual property portfolio, and strengthen its sales team. The company aims to disrupt the flavoring industry with its natural and circular solution, contributing to the broader shift towards sustainability in the food sector. As part of its growth strategy, Fungu’it plans to expand its database of fermentation strain and by-product combinations, develop more diverse flavor profiles, and establish relationships with flavor houses and food manufacturers to commercialize its products, particularly targeting the plant-based food segment.