German Startup Formo Raises $61M in Series B Funding to Expand Sustainable Cheese Alternatives
German startup Formo, renowned for its animal-free cheese alternatives, has successfully secured $61 million in a Series B funding round, bringing its total funding to $115.3 million. The company utilizes a naturally occurring fungus called Aspergillus Oryzae (koji) to create cheese-like products that closely resemble whey protein. Notable investors in this round include Foodlabs, EQT Ventures, and Lowercarbon Capital, along with new backers like Sazaby League, Seven Ventures, and REWE Group. Formo’s cheese alternatives, Frischhain and Camembritz, are now stocked in over 2,000 stores across Germany and Austria, including REWE, BILLA, and METRO. The company claims its Frischhain product generates 65% fewer emissions, uses 83% less land, and needs 96% less water compared to regular cream cheese. The newly secured funds will be utilized to expand globally, introduce more products, and target net profitability by 2027. Co-founder and CEO Raffael Wohlgensinger expressed excitement, highlighting it as a culmination of five years of research and development.
Key Takeaways
- Formo's Series B funding amounts to $61 million, totaling $115.3 million.
- The cheese alternatives made from koji fungus mimic whey protein for a cheese-like texture.
- New investors include Sazaby League, Seven Ventures, and REWE Group.
- Formo's products are now available in over 2,000 stores in Germany and Austria.
- Frischhain cheese alternative reduces emissions by 65%, uses 83% less land, and 96% less water.
Analysis
The $61 million Series B funding received by Formo underscores the escalating demand for sustainable food alternatives. The influx of capital is likely to accelerate global expansion and product diversification, positioning Formo as a key player in the plant-based dairy market. Both existing investors and new backers such as REWE Group stand to benefit from Formo's market penetration and sustainability claims, potentially enhancing their portfolios and brand reputations. In the short term, Formo's expansion may disrupt traditional dairy markets, while in the long term, it could drive broader industry shifts towards sustainable practices. The success of Formo's cheese alternatives could inspire similar innovations, pressuring competitors to adopt more eco-friendly production methods.
Did You Know?
- Aspergillus Oryzae (koji): A naturally occurring fungus used in traditional Japanese fermentation processes, such as making soy sauce and sake. Formo utilizes this fungus to create cheese alternatives that mimic the texture of whey protein, offering a sustainable and animal-free alternative to traditional cheese.
- Series B funding: A stage in the venture capital funding process where companies have already proven their business model and are looking to scale. This round typically involves larger investments from more established investors, as seen with Formo's $61 million Series B, which included both existing and new backers.
- REWE Group: A major German retail and tourism group, known for its supermarket chains like REWE and BILLA. As a new investor in Formo, REWE Group's involvement signifies a strategic alignment with the startup's mission to provide sustainable food alternatives, potentially leading to wider distribution of Formo's products across its retail network.