Fungu’it Funding News- France Foodtech Startup Fungu’it Secures €4Millon Funding

Founded in 2022, the company transforms agricultural by-products—like flaxseed, sunflower press cakes, and legumes—into high-value flavor ingredients through an innovative solid-state fermentation process. This method is not only efficient but also significantly reduces water and energy use compared to traditional techniques.

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Fungu’it has developed two standout ingredients: a rich umami flavor tailored for plant-based foods, and a chocolate flavor that can cut cocoa use by up to 25%, helping reduce deforestation and carbon emissions tied to cocoa farming.

CEO and co-founder Anas Erridaoui says the company’s approach redefines flavor creation by turning underused by-products into powerful, sustainable alternatives.

“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.

We want to restore purpose in what we eat, without compromise. Through fermentation, we reveal the richness of overlooked raw materials to create flavours that are more accurate, vibrant, and accessible.”

In 2022, France’s food flavoring industry generated €730 million in revenue, offering high gross margins of around 50% and requiring relatively low industrial investment.

With growing demand for natural products and a move away from synthetic ingredients, the market is well-positioned for innovation — creating strong opportunities for companies like Fungu’it.

The €4 million funding round was led by Asterion Ventures, with participation from Evolem and UI Investissement through Oser BFC.

“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 industrialization expertise,” says Juliette Delanoë, Partner at Asterion Ventures.

The funding will help Fungu’it build an industrial pilot plant with a production capacity of several dozen tons per year. It will also support the patenting and industrialisation of its process, along with the creation of a unique database by testing hundreds of combinations of fungi strains and by-products.

Additionally, the startup plans to grow its sales team to speed up the launch and commercialisation of its first flavorings, with a strong focus on the rapidly expanding plant-based food market.

About Fungu’it

Fungu’it is developing a patented solid-state fermentation technology that uses filamentous fungi to create natural, organic, and sustainable flavorings. By transforming agricultural by-products into high-value ingredients, the startup embraces an innovative and circular production model.