Nutrition Technologies said in a statement that the funding round was also backed by Sumitomo Corporation, ING Sustainable Investments and Mandala Capital, along with existing investors Openspace Ventures, Seeds Capital and Hera Capital.

The startup plans to use the funding to expand into fresh markets, launch new products, create new partnerships and accelerate research and development.

Founded in 2014, Nutrition Technologies manufactures protein from black soldier fly larvae as a sustainable alternative to fishmeal, a common ingredient in animal feed.

Led by Nick Piggot and Tom Berry, Nutrition Technologies operates in Singapore and Malaysia, and plans to build facilities across Southeast Asia.

Last year, the company raised US$5 million in funding led by Hera Capital and supported by existing investors Openspace and Seeds Capital. It also opened its first industrial-scale insect protein factory in the city of Iskandar Puteri, Malaysia.

Since 2015, Nutrition Technologies has been creating a commercial replica of the natural decomposition process, using proprietary growth inoculants and black soldier flies to turn low-grade crop and food waste into animal feed ingredients and biofertilizers.

The sector has gathered increasing attention over the past few years, with the global insect protein market expected to grow in value to US$1.3 billion by 2027 from an estimated US$343 million in 2021.

“Commercial insect protein production is one of the most important innovations of the past few years, with the potential to disrupt the animal feed and fertilizer sectors and solve multiple issues the world is currently facing,” said Buranin Rattanasombat, senior executive vice president for innovation and new ventures at PTT.