In a bid to redefine how flavour is produced in a sustainability-conscious era, French foodtech startup Fungu’it has raised €4M to industrialise its fermentation-based natural flavour technology. The round, led by Asterion Ventures with participation from Evolem and UI Investissement via Oser BFC, aims to expand production capacity and speed up commercial deployment of the company’s flagship natural flavourings. Based in Dijon, the startup uses solid-state fermentation and filamentous fungi to transform agricultural by-products into powerful and sustainable natural ingredients.
As consumer demand grows for clean-label, plant-based and climate-conscious food, flavour houses are under pressure to deliver without compromising taste. That’s where Fungu’it’s solution resonates. By turning flaxseed cakes, legumes and other overlooked waste streams into umami and chocolate flavours, the startup gives food producers a new tool to meet sustainability targets while preserving product quality and sensory appeal.
A natural flavour shift for food producers
Fungu’it’s solid-state fermentation process produces meaty umami and cocoa-replacement flavours that support the rising plant-based and sustainable confectionery sectors. Its meaty umami flavour enhances plant-based recipes and helps reduce reliance on conventional animal protein, aligning with efforts to lower the food industry’s environmental impact. In parallel, its chocolate flavour-designed to replace up to 25% of cocoa-offers food manufacturers a way to reduce CO₂ emissions and deforestation caused by cocoa farming.
According to Fungu’it CEO and co-founder Anas Erridaoui, “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.”
Erridaoui believes the company’s innovation addresses a key tension in the food sector: balancing flavour performance with natural, sustainable production. “Our technology revolutionises the creation of natural, sustainable, and high-performance flavourings, while upcycling often wasted by-products. 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,” he said.
Industrialising natural flavour innovation with new funding
With this €4M investment, Fungu’it plans to build an industrial pilot plant with a production capacity of several dozen tonnes per year. The funding will also support IP development, creation of a proprietary database of fermentation strain and by-product combinations, and expansion of the sales team to accelerate go-to-market efforts-particularly within the plant-based food segment.
Backing the round, Asterion Ventures partner Juliette Delanoë said: “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.”
UI Investissement’s Guillaume Blanchet noted the regional and environmental relevance of the startup’s mission: “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.”
Bruno Rousset, founder of Evolem and honorary chairman of its supervisory board, added: “Fungu’it’s commitment to sustainable food and natural ingredients fully aligns with our investment strategy in innovative, environmentally friendly, and value-creating solutions.”
A fungi-forward team with a flavour for sustainability
Fungu’it was founded in 2022 by Anas Erridaoui and Jeanne Baudevin. Jeanne met Anas during her master’s degree in Entrepreneurship and Innovation at EM Lyon. They are based in Dijon and have worked together closely since the startup’s inception at the DECA-BFC regional incubator. The incubator gave Fungu’it early support in regional strategy and scale-up planning.
The startup leverages a diverse range of expertise in scientific research, industrial processes, commercial development, and sensory analysis. The team’s varied professional backgrounds embody a cross-disciplinary approach to food technology.
Scaling and selling sustainable flavouring alternatives
Fungu’it plans to continue growing its team as it prepares to commercialise its first ingredients. With pilot-scale production and a growing dataset of fungi-substrate pairings, the company is positioning itself as a leading player in the transition toward natural and sustainable food solutions.
Its primary competitors include flavour houses and biotech firms working on fermentation-based food additives, but Fungu’it’s solid-state, low-resource method and commitment to upcycling set it apart. By offering taste without trade-offs, it aims to appeal to food brands navigating both environmental and economic pressures.
As the natural flavour market expands-particularly in sectors like plant-based food and sustainable confectionery-Fungu’it appears well positioned to capitalise on the shift. With strong regional roots, cutting-edge technology, and fresh capital, its fungi-powered platform is one to watch.
