Dijon, France-based Fungu’it has secured €4M in a funding round led by Asterion Ventures to advance its fermentation-based natural flavouring technology.
Founded in 2022, the foodtech startup aims to transform agricultural by-products into natural flavourings through solid-state fungi fermentation. Anas Erridaoui joined forces with Jeanne Baudevin to build Fungu’it, and they were subsequently joined by Cyrille Viossat.
The funding will enable Fungu’it to build an industrial pilot plant with a production capacity of several dozen tonnes per year, patent and industrialise its process, and develop a database from testing hundreds of strains and by-product combinations.
The company also plans to strengthen its sales team to accelerate the commercialisation of its first flavourings, particularly in the plant-based alternatives segment.
The round attracted participation from Evolem and UI Investissement via Oser BFC. Fungu’it has successfully stabilised two flagship ingredients: a meaty umami flavour for plant-based alternatives and a sustainable chocolate flavour that can reduce cocoa usage in recipes by up to 25 per cent.
Targeting France’s natural flavouring market
Fungu’it’s solid-state fermentation process converts agricultural by-products such as flaxseed and sunflower press cakes into high-value natural flavourings whilst significantly reducing water and energy consumption compared to traditional production methods.
The global natural flavourings market is experiencing rapid growth driven by increasing manufacturer demand for healthier, more sustainable solutions. According to a statement from Fungu’it, in 2022, France’s food flavouring industry generated €730M in revenue, offering gross margins of around 50 per cent with relatively controlled industrial investment requirements.
From agricultural waste to premium ingredients
The startup’s chocolate flavour alternative helps address environmental challenges in cocoa production, where farmers often clear tropical forests for new plantations instead of cultivating existing land, leading to significant biodiversity loss.
Asterion Ventures focuses on backing high-impact startups and supports around 10 companies annually, including Weefin and Ever Dye, while offering access to a community of over 800 business angels.
Anas Erridaoui, CEO and co-founder of Fungu’it, says, “We want to restore purpose in what we eat —without compromise. Through fermentation, we reveal the richness of overlooked raw materials to create flavors that are more accurate, vibrant, and accessible.”
“Fungu’it addresses a real friction point in the agri-food industry: how to do better—more natural, more circular—without compromising on performance. It’s a breakthrough innovation in a strained market, driven by a team with proven industrialisation expertise,” adds Juliette Delanoë, Partner at Asterion Ventures.
Circular economy approach to food production
Since its founding in 2022, Fungu’it has joined regional incubator DECA-BFC, strengthening its ties with the Bourgogne-Franche-Comté region.
The company’s circular approach transforms often-wasted by-products into premium ingredients, contributing to reduced food waste while meeting growing demand for natural alternatives to synthetic flavourings.
“Supporting Fungu’it means investing in a project with strong territorial and environmental impact, which enhances the agricultural by-products of Bourgogne-Franche-Comté while addressing global industrial challenges,” says Guillaume Blanchet, Partner at UI Investissement.
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