French start-up Fungu’it secures funding to disrupt the natural flavour market
French foodtech start-up Fungu’it has announced a €4 million funding round to support the development of its pioneering natural flavour technology.
Based in Dijon, the company is using solid-state fermentation of filamentous fungi to create sustainable, high-performance aromatic ingredients from agricultural by-products. This fresh investment will enable the company to build a pilot production unit, expand R&D capabilities, and improve its commercial reach—particularly in the fast-growing plant-based sector.
Fermentation as a path to circular innovation
Founded in 2022 by Anas Erridaoui, Fungu’it sets itself apart by rejecting synthetic flavouring processes in favour of a more natural and environmentally conscious approach. The start-up uses underutilised agricultural co-products such as linseed and sunflower press cakes, or legumes as substrates for cultivating fungi that naturally generate complex aromatic compounds. These processes, inspired by traditional Asian fermentations, have been reimagined for industrial-scale production using patented solid-state fermentation technology that consumes significantly less water and energy than conventional liquid fermentation methods.
The result is a new category of natural aromas that combine sensory precision with environmental responsibility. One of Fungu’it’s signature creations is an umami flavour enhancer designed specifically for plant-based meat alternatives. It enhances taste depth and satisfaction, addressing one of the sector’s major challenges: flavour authenticity. Another innovation is a chocolate aroma that allows manufacturers to reduce cocoa usage by up to 25% in recipes—directly tackling the sustainability concerns tied to cocoa farming and deforestation in tropical regions.
Scaling a local, sustainable ecosystem
Fungu’it’s model is built on more than product innovation. The start-up aims to redefine how food ingredients are sourced, produced, and valued by embedding itself in a local, circular economy. Based in the Bourgogne-Franche-Comté region, Fungu’it is currently incubated at DECA-BFC and works closely with regional agricultural networks and industrial partners to minimise transport and maximise territorial impact. From raw material procurement to flavour development, the company maintains a strong regional anchoring in its supply chain.
For investors, this blend of ecological awareness, economic pragmatism, and technical know-how is a winning formula. “Fungu’it is addressing a core tension in the food industry—how to create more natural and more circular products without compromising on performance,” says Juliette Delanoë, Partner at Asterion Ventures, which led the funding round. “It’s a breakthrough innovation backed by a team with strong industrialisation expertise.”
Meeting industry demand for natural alternatives
As food manufacturers seek to phase out artificial flavourings while keeping costs in check, demand for natural alternatives is growing fast. In France alone, the natural flavours market was valued at €730 million in 2022, with average gross margins of around 50%. Increasingly, brands are also looking to distinguish themselves through superior sensory profiles, opening further opportunities for bespoke, clean-label solutions.
Fungu’it’s €4 million funding round, secured from Asterion Ventures, Evolem, and UI Investissement via the OSER BFC fund, will help the company accelerate its industrial roadmap. Alongside the construction of its pilot production unit (capable of producing several dozen tonnes annually), Fungu’it will also expand its strain and substrate library and strengthen its commercial team.
With its unique mix of scientific expertise, sustainable sourcing, and flavour innovation, Fungu’it positions itself at the crossroads of some of the biggest trends in food today. By giving new value to overlooked raw materials, it hopes to make flavour not just more natural—but more meaningful.
Image credit: Pixabay – Pexels
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