Paris-based Ÿnsect bags €160M to focus on bug-based pet food; to shut Dutch facility

Paris-based Ÿnsect, a company that produces protein and natural insect fertilisers, has reportedly raised €160M in a fresh round of funding. According to Tech.eu, the French company did not disclose the names of the investors, noting that a second tranche was in talks.

The company’s previous backers include Bpi France, the European Commission, Belgium’s Astanor Ventures, and French bank Caisse d’Epargne.

Ÿnsect says it will use the capital to change its focus from producing largely animal feed to the more profitable markets for pet meals and food ingredients.

Shutting down the Dutch manufacturing facility

After the rising expenses across the board (energy, raw materials, and debt), Ÿnsect says it will refocus on profit outputs and will stop operating its Dutch manufacturing facility, which was added to the firm by acquiring Protifarm around two years ago.

According to the firm’s CEO Antoine Hubert, 35 jobs have already been lost due to the shutdown and another 38 are expected to be eliminated. 

These 73 roles represent a 23.8 per cent fall in the employment of Ÿnsect, which has 360 employees registered on LinkedIn.

In an interview with Reuters, Antoine Hubert, says, “In an environment where there is inflation on energy and raw materials but also on the cost of capital and debt, we cannot afford to invest loads of resources in markets which are the least remunerative (animal feed), while you have other markets where there is a lot of demand, good returns and higher margins.”

About Ÿnsect

Founded in 2011 by scientists and environmental activists, Ÿnsect claims to be the world leader in the production of protein and natural insect fertilisers. The company processes insects into high-end, high-value ingredients for pets, fish, plants, and humans.

Ÿnsect offers a long-term, sustainable, organic solution to speed up the consumption of protein and plants from its purpose-built farms. It produces lesser and yellow mealworms in automated vertical farms using technology protected by 377 patents spanning 44 categories.

Currently, Ÿnsect has three production facilities – one in Dole, France (opened in 2016), one in the Netherlands (2017), one in the US (since 2022), and a third facility, the biggest vertical farm in the world, is being built near Amiens, France.

The company has received almost $500M from international investment funds, banks, and governmental organisations and exports its goods worldwide.