France-based insect feed producer Innovafeed successfully raised EUR 51 million (USD 58 million) to scale up its operations and announced it is cutting 60 positions, mainly from its Gouzeaucourt site, in a shift away from research and development.
Innovafeed said the funding round was largely backed by its financial partners and the funding will help it in a new phase of its development as a company. That new phase, according to the firm, will feature investments in commercial deployment, specifically enabling it to accelerate its commercial development in aquaculture and pet food, invest in industrial equipment to develop new products, and optimize its current asset base to increase performance.
The company said since its last funding round in 2022, it has reached industrial maturity at its Nesle production unit and has already produced over 15,000 metric tons (MT) of protein and oil using insect-based ingredients while providing ingredients that produce 70 percent to 90 percent fewer carbon emissions than conventional products. During that time, its revenue has also doubled each year, the company said.
“Since day one, we have carried a dual ambition: to demonstrate that we can produce high-performing, competitive, and sustainable ingredients for nutrition without relying on the intensive exploitation of marine resources and that it is possible to build an innovative industrial project in France,” Innovafeed CEO and Co-Founder Clément Ray said. “The successful scale-up of our industrial model marks a major milestone for Innovafeed today and opens up a new phase of commercial deployment.”
As it begins to focus on its commercial development and production, it has begun to pull back on the technical research and development that was necessary to launch its product. That pullback includes what it described as a “reorganization” of its operations, specifically reducing the zootechnical research and development it performed to establish black soldier fly (Hermetia illucens) production.
“A project involving the reduction of 60 positions is planned, two-thirds of which affect the Gouzeaucourt site,” the company said.
Ray said the company is now focused on developing the value chain for its ingredients.
“We must also adapt our organization to this new phase by reducing industrial and zootechnical R&D activities while continuing to invest alongside our customers to demonstrate functionalities and performance of our products,” Ray said. “The talents who made up our R&D and industrial teams enabled us to reach unprecedented milestones in the sector. While we must take demanding measures to adjust our organization to this new phase, we are deeply committed to recognizing the dedication of our teams over the past years and to implementing this transformation plan responsibly, in full respect of social dialogue and in close connection with local authorities.”
