German agtech Tupu secures €3M to revolutionise mushroom farming, expand market reach

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Berlin-based Tupu, an agtech company that plans to transform the mushroom farming industry through its decentralised farming system, announced that it has secured $3.2M (approximately €3M) in a Seed round of funding.

The round was co-led by FoodLabs and Zubi Capital, with participation from Clear Current Capital, FoodHack, IT-Farm, Coast Cap, and notable business angels in the food and tech sectors like Roger Hassan and Gil Horsky.

Till Hoelzer, Principal at FoodLabs, says, “Controlled environment farming is a key technology to make our food supply chain climate resilient. We’re excited about Tupu as they are able to make indoor farming economically viable.”

“As early backers of the company, we’re very happy about their recent funding round and their journey ahead,” adds Hoelzer.

Capital utilisation

Tupu says it will use the funds to scale production and supply major players in the food service and retail sectors. Additionally, the company aims to increase space efficiency and advance its automation technology.

Eldad Arnon, co-founder and CEO of Tupu, says, “We are grateful to have such forward-thinking investors onboard that share our faith in the power of mushrooms to address the pressing challenges of global food insecurity in the face of the climate crisis.”

“We envision a future where food is produced right where it is consumed and organic farm-fresh food is accessible to everyone,” adds Arnon.

Feeding the next generation by ditching conventional farming

Founded in 2021 by Eldad Arnon and Daniel Lock, Tupu aims to unlock the potential of the mushroom industry. Its technology includes the first gourmet mushroom harvesting robot, advanced AI with camera vision, and integration of IoT data points throughout their farms.

This digitisation and automation address challenges in agriculture, from labour shortages to improving yields and spatial efficiency.

Tupu utilises a patented modular farming system along with bioscience, robotics, and AI to grow organic gourmet mushrooms directly in cities. The company’s approach offers consumers sustainable, farm-fresh products at competitive prices. 

Since launching their first farm in November 2022, Tupu has supplied over three tons of mushrooms monthly to various customers, including local wholesalers and Michelin-starred chefs.

Daniel Lock says, “While the vertical farming sector has been challenging recently, in particular for leafy greens and other energy-intensive crops, urban farming will play a key role in our future food system.” 

“Unlike plants, mushrooms have always been cultivated indoors, yet in an inefficient manner, and we’re leapfrogging the current state of the industry with our technology by 50 years. Mushrooms offer immense potential across various sectors – food is just the beginning,” adds Lock.

Tupu’s impact on the culinary scene

According to Tupu, mushrooms are rich in nutrients and eco-friendly and can be grown year-round indoors, avoiding supply chain disruptions. They offer essential vitamins, antioxidants, fibre, and protein with minimal environmental impact.

Compared to other food sources, mushrooms surpass even vegetables in terms of CO2 emissions, water consumption, and land usage efficiency. 

Despite this, the current farm-to-fork journey spanning up to 7000 km leads to compromised taste, shorter shelf life, reduced nutrients, and a large carbon footprint, highlighting the need for more sustainable practices.

At the same time, the demand for organic, sustainable, and local products is rising due to health consciousness and veganism. 

Berlin’s top chefs, like Sebastian Frank of Michelin-starred Horváth, use Tupu’s mushrooms for innovative vegan dishes, highlighting the company’s impact on the culinary scene.

Brief about the lead investors

FoodLabs, an early-stage VC investor and venture studio in Berlin, focuses on food, sustainability, and health startups. With a belief in entrepreneurship driving food industry innovation, they have backed over 50 early-stage foodtech companies since 2016. 

FoodLabs supports purpose-driven entrepreneurs aiming to transform the food industry and has been an early investor in notable European foodtech startups like Meatable, Klim, Mushlabs, and Formo.

Zubi Capital, established in 2020 as part of Zubi Group, is a Spanish impact asset and wealth management firm. They provide financially competitive investment solutions while focusing on social, environmental, and economic impact.

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Vishal Singh

Vishal Singh is a News Reporter and Social Media Marketing Lead at Silicon Canals. He covers developments in the European startup ecosystem and oversees the publication's social media presence. Before joining Silicon Canals, Vishal gained experience at the Indian digital media outlet Inc42, contributing to its growth with insightful content. Despite being a college dropout, his passion for writing has driven his career in journalism.

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