Plant protein startup Proeon raises funding to tap multibillion-dollar mkt

Pune-based food ingredient start-up Proeon, said it recently raised Rs 17.5 crore as seed capital. The firm said it is committed to building a sustainable and environmentally friendly food ecosystem. 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), and Waoo Partners (Pratul Shroff family office).

Existing investor Sanjaya Mariwala, MD of OmniActive Health Technologies Limited, also participated in this round. The funds will be used to enhance growth and set up a research lab in the Netherlands, Europe, filing IP (intellectual property), scaling up production, and expanding the team.

The firm said it has specialised in high-quality plant protein ingredient innovation. It was founded in 2018 by Ashish Korde and Kevin Parekh to promote clean and healthy food for “people, planet, and conscience”. The company helps solve critical formulation challenges at the ingredient level. This makes it easier for food companies to make tastier and healthier plant-based meat, dairy, and egg replacement products.

“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,” said Founders Kevin Parekh and Ashish Korde. “Our immediate focus would be expanding presence in the markets of North America and Europe, where the shift to plant proteins is accelerating at an unprecedented pace.”

The plant-based proteins sector is projected to reach nearly $200 billion by 2027. Food manufacturers are aiming to capture the new market that is being created. Global consumers are increasingly becoming aware of the impact of their food choices, leading them to opt for plant-based diets.

Entrepreneur Shaival Desai, an investor in Proeon, has also invested in fresh meat and seafood brand Licious and hygiene and wellness brand Pee Safe. Desai said the founders of Proeon are bringing 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.

Anjani Bansal, founder – Flowstate Angel Investment Fund, said Proeon’s technology will have a major societal impact by solving the climate change and nutrition challenges of today.

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

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