Insect protein producer Nutrition Technologies closes US$20m equity funding

SINGAPORE— Nutrition Technologies, a Singapore-based agri-biotech company which produces animal feed from black soldier fly maggots, has raised US$20M in Equity funding, the proceeds will be used to fund an expansion into new markets; launch new products; accelerate R&D; and create new strategic partnerships.

The equity round was led by PTT Ventures and supported by Sumitomo Corporation, ING Sustainable Investments, Mandala Capital, as well as continued participation from existing investors: Openspace Ventures, SEEDs Capital and Hera Capital.

The investment comes at a critical time for global food security, which the company maintains has steadily declined in the past few decades and has been significantly tested in recent years through extreme weather events and war:

“Population growth has fueled the current 1.2bn tons demand for animal feed ingredients, which has severe environmental consequences both for land and sea. There is a growing protein deficit, with supplies of traditional proteins for feed, such as fishmeal and soybean meal, stagnating due to overfishing and deforestation. 

Insect protein, in the form of meal made from the larvae and oil extracted from them, is being promoted as a climate-friendly alternative to animal feeds produced from fish and soy.

Tackling food security is only the tip of the iceberg and with our strengthened balance sheet, great partners and best in class IP, we are strategically positioned to lead the next agricultural revolution

Richard Hayler, CFO, Nutrition Technologies Tweet

Nutrition Technologies argues that insects represent a virtually unlimited and untapped pool of biological assets, with huge opportunities for value creation.

“Tackling food security is only the tip of the iceberg and with our strengthened balance sheet, great partners and best in class IP, we are strategically positioned to lead the next agricultural revolution,” said Richard Hayler, CFO, Nutrition Technologies.

Since 2015, the company has been using proprietary growth inoculants and black soldier flies to turn low-grade crop and food waste into animal feed ingredients and biofertilizers.

Its production facility in Johor, Malaysia, bioconverts several hundreds of tons of organic waste every week into functional proteins and oils, with the vertical insect production system employed optimized for the tropical conditions in Southeast Asia.

The Asian operator is planning to expand production capacity both at its current operating plant in Malaysia as well as through a new JV project in a soon-to-be-announced second country in Southeast Asia. 

The company is also intending to expand its R&D capabilities in Singapore; commence commercial activities in the UK and EU; and add several new patents to its existing IP portfolio.

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