Plant-based ingredient supplier Proeon raises USD2.4 miilion in seed funding

Committed to building a sustainable and environment friendly food ecosystem, Pune based food ingredient start-up Proeon announced that it has raised USD 2.4 million as seed capital.

The funding round, led by entrepreneur Shaival Desai, also saw participation from Flowstate Ventures, Peak Sustainability Venture Fund I (executed by Samir Shah on behalf of the Fund), Waoo Partners (Pratul Shroff family office), and other angel investors.

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Existing investor Sanjaya Mariwala, MD of OmniActive Health Technologies Limited also participated in this round.

Speaking on the funding, founders Kevin Parekh and Ashish Korde said, “We are at the centre of creating next-gen plant protein ingredients and are delighted with the trust shown by our investors. By relentlessly focusing on innovation and partnering with large global brands as well as startups, we are working towards creating food products that are hassle-free to formulate, and are loved by consumers.”

The funds will be utilized to enhance growth and set up a research lab in the Netherlands, Europe, filing IP, scaling up production and expanding the team.

“We're really happy to have partnered with Proeon in their journey to innovate in the alternative proteins space. Kevin and Ashish, bring deep industry experience and thorough technical understanding of the proteins space and are the perfect team to cater to this industry that thrives on innovation,” added Desai who has also invested in Licious.

Founded by Ashish Korde and Kevin Parekh in 2018, it specialises in high quality plant protein ingredient innovation to promote clean and healthy food for “people, planet, and conscience”.

With the plant-based proteins sector projected to reach nearly USD 200 Bn by 2027, the founders have struck a chord in the global food industry as food manufacturers are aiming to capture the new market being created. Global consumers are increasingly becoming aware of the impact of their food choices, leading them to opt more and more for plant based diets.

Research from the Good Food Institute India indicates that $3.1B was invested in the broader smart protein sector globally in 2020, up 3x from the year prior as enthusiasm for sustainable and secure protein supply chains deepened during the Covid-19 pandemic.

“Replacing meat with plant based alternatives is a critical part of the planet’s journey towards sustainable survival over the next few decades . Proeon’s plant-based protein will play an important role in achieving that sustainability,” said Pratul Shroff.

Currently, the company is working with brands from Europe, North America, and Southeast Asia to build more sustainable and healthier plant-based alternatives such as highly functional plant-based egg-replacement products, clean-label burgers, patties, and alternative dairy products.

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In collaboration with their partners and customers, they are also aiming to save more than 170 billion liters of water and eliminate about 150 metric tonnes of CO2 emissions by replacing wasteful, animal-based foods with plant-based alternatives.