€4M in Funding Fuels Fungu’it's Push to Reimagine Flavor from Waste

Courtesy: Fungu’it

Dijon-based startup Fungu’it has closed a €4 million funding round to scale up its pioneering use of solid-state fungal fermentation to create natural, sustainable flavorings from agricultural by-products. The investment, led by Astenor Ventures with participation from Evolem and UI Investissement via Oser BFC, will support the construction of an industrial pilot plant, expansion of the commercial team, and further development of the company’s proprietary flavor portfolio.

Founded in 2022 by Anas Erridaoui and Jeanne Baudevin, and later joined by Cyrille Viossat to strengthen industrialization capabilities, Fungu’it is reimagining how we create taste—without synthetic additives or environmental trade-offs. At the heart of its innovation lies a patented solid-state fermentation technology that harnesses the power of filamentous fungi to convert underused feedstocks like flaxseed cakes, legumes, brewer’s grains, and sunflower press cakes into deeply flavorful, high-value ingredients.

“Our mission is to restore purpose in what we eat—without compromise,” explains CEO and co-founder Anas Erridaoui. “Through fermentation, we reveal the richness of overlooked raw materials to create flavors that are more accurate, vibrant, and accessible. It’s about using what we already have, better.”

The newly announced funds will allow Fungu’it to industrialize its process with a pilot plant capable of producing several dozen tons per year. The company also plans to protect its IP further, expand its growing database of fungal strains and substrate combinations, and scale its go-to-market efforts, with a particular focus on plant-based foods—a segment hungry for authentic taste solutions.

What sets Fungu’it apart isn’t just its circular approach, but the environmental performance of its technology. Unlike conventional liquid fermentation methods, which are resource-intensive and require continuous mixing, Fungu’it’s solid-state system significantly reduces water and energy use. A recent internal lifecycle analysis claims the process uses ten times less water, up to 50% less energy, and cuts the carbon footprint by 92%.

“This is more than incremental innovation,” says Juliette Delanoë, Partner at Asterion Ventures. “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 in a market under strain, with a team that understands what it takes to scale.”

Fungu’it’s early work has resulted in two flagship flavorings: a bold, meaty umami extract designed to enhance the sensory profile of plant-based meats, and a sustainable chocolate flavor that can replace up to 25% of cocoa powder in formulations without sacrificing taste. The latter addresses a growing concern over the environmental and ethical toll of cocoa production. With deforestation and biodiversity loss linked to cocoa farming in tropical regions, Fungu’it’s alternative offers food manufacturers a way to reduce dependence on cocoa while lowering emissions.

“Our chocolate flavor is more than a cost-saving tool,” says Erridaoui. “It’s a way to help preserve ecosystems, reduce pressure on land, and make sustainable food systems truly scalable.”

France’s flavoring market is already sizeable, generating €730 million in revenue in 2022, with attractive margins and relatively low capital expenditure for production. But the global backdrop is shifting fast, as manufacturers push to eliminate synthetic ingredients and meet demand for clean-label, plant-based, and climate-friendly foods. Fungu’it is well-positioned to ride this wave.

The startup’s roots in Bourgogne-Franche-Comté—bolstered by its involvement in the DECA-BFC regional incubator—remain central to its identity. “Supporting Fungu’it means investing in a project with strong territorial and environmental impact,” notes Guillaume Blanchet, Partner at UI Investissement. “It enhances the agricultural by-products of our region while addressing global industrial challenges.”

Bruno Rousset, Founder of Evolem and Honorary Chairman of the Supervisory Board, echoed that sentiment: “Fungu’it’s commitment to sustainable food and natural ingredients fully aligns with our strategy of investing in innovative, environmentally friendly, and value-creating companies.”

As the company scales production and commercial activity, it aims to become a critical ingredient supplier for a new generation of food makers—those looking to marry flavor, function, and footprint. The pilot plant will not only validate its technology at industrial scale but also serve as a launchpad for wider adoption of fermentation-derived flavoring solutions across multiple product categories.

In a sector long dominated by synthetic additives and global supply chains, Fungu’it offers a grounded, local, and regenerative model for flavor production, proving that what’s good for the palate can also be good for the planet.