Innovafeed secures US$59 million to accelerate insect protein growth

FRANCE – Innovafeed, a French producer of insect-based ingredients for animal nutrition, aquaculture and pet food, has raised €51 million (US$59 million) to support a new phase of commercial expansion following the completion of its industrial scale-up strategy.

The funding round, backed primarily by existing investors and banking partners, marks a strategic shift for the company as it moves from industrial development toward accelerating market adoption of its insect-derived ingredients.

Founded in 2016, Innovafeed produces protein and oil ingredients from the black soldier fly (Hermetia illucens), targeting feed, aquaculture and pet food markets seeking sustainable alternatives to conventional protein sources.

According to the company, its flagship production facility in Nesle, northern France, has produced more than 15,000 tonnes of insect protein and oil over the past three years. 

During the same period, production volumes increased tenfold while manufacturing costs fell to approximately one-seventh of previous levels.

Innovafeed said its industrial scale now exceeds that of the sector’s second-largest producer by a factor of three, while revenues have doubled annually as demand for sustainable feed ingredients continues to expand.

“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,” said Clément Ray, CEO and co-founder of Innovafeed.

Focus shifts to aquaculture and pet food markets

The new funding will support the commercial expansion of the company’s Hilucia product portfolio, particularly within aquaculture and pet food applications, where demand for sustainable and functional ingredients continues to grow.

Innovafeed said the investment will also be used to develop new applications, upgrade industrial equipment and further optimise production processes.

“The successful scale-up of our industrial model marks a major milestone for Innovafeed today and opens up a new phase of commercial deployment,” Ray said.

“Innovafeed is now focusing its efforts on accelerating the development of value chains for its ingredients, capturing the full value of their multiple functional properties, improving animal health and growth, which have been validated and proven for 10 years now.”

The company claims its insect-based ingredients can reduce carbon emissions by 70% to 90% compared with conventional protein sources commonly used in feed and pet food formulations.

The financing round attracted support from existing shareholders, including ADM, Creadev, QIA, Temasek, FFC and ABC Impact.

Industry partners welcomed the investment as a positive signal for the future of sustainable ingredient innovation.

“The pet food market continues to evolve toward ingredients that deliver both sustainability and functional benefits,” said Detmar Barneveld, Commercial Manager at Vobra Special Petfoods.

As part of its restructuring, Innovafeed will reduce its workforce by approximately 60 positions and consolidate zootechnical research and development activities at its Nesle facility. 

The company said the move reflects its transition from industrial development to commercial deployment while maintaining customer-focused innovation programmes.

Despite the workforce reduction, Innovafeed said it remains committed to expanding the use of insect-based ingredients across global feed, aquaculture, and pet food value chains as producers seek lower-carbon, more sustainable nutrition solutions.

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