Animal-free cheese start-up Formo has successfully secured $61 million in Series B funding from notable investors, including German retail leader REWE.
Founded in 2019 and based in Berlin, Formo specializes in crafting dairy-free cheese utilizing koji protein. This innovative approach involves fermenting natural koji fungal cultures or microorganisms, which serve as an alternative to the whey traditionally sourced from cow’s milk.
In addition to announcing this significant funding milestone, Formo revealed that its Frischhain and Camembritz cheese-alternative products will soon be available in over 2,000 REWE, Billa, and Metro stores throughout Germany and Austria.
“Utilizing the newly acquired funds, our company aims to reach several key objectives, such as expanding internationally, diversifying our product portfolio, driving revenue growth, and achieving net profitability by 2027,” Formo stated.
Furthermore, Formo is advancing its technological platform to accelerate the commercialization of animal-free casein products, thereby broadening its offerings to include hard cheeses and capturing further market opportunities.
The Series B funding round welcomed new investors including REWE, Sazaby League, Seven Ventures, Woodline Partners, and The Nature Conservancy.
Existing backers, such as Foodlabs, EQT Ventures, Lowercarbon Capital, Happiness Capital, Elevat3 Capital, and Grazia Capital, are also celebrating their ongoing relationship with Formo. Notably, Formo raised €42 million (approximately $46.3 million) in its Series A round back in 2021.
Dr. Sandra Wilde, Vice President for Food at Formo, emphasized the importance of koji in global cuisines. She stated, “Koji has been used in Japanese cuisine for centuries to make miso, sake, and soy sauce, and it’s the key to our innovation. Koji protein resembles whey protein, making it the perfect foundation for our cheese alternatives.”
Formo believes the global cheese market is primed for “disruption” due to the rise of animal-free cheese options. The startup highlights its environmental and sustainability advantages, asserting that its production process generates 65% fewer emissions, consumes 83% less land, and requires 96% less water compared to conventional cheese manufacturing.
Despite these advantages, alternatives to traditional cheese have not yet captured market share to the same extent as other dairy segment substitutes. Formo’s cheese alternatives, Frischhain and Camembritz, are free from cow’s milk, lactose, gluten, and hormones, and contain no preservatives.
CEO and co-founder Raffael Wohlgensinger remarked, “Everything is coming together – the launch of our first products, the positive results of our environmental analyses, and the successful funding round. This is the result of five years of intensive research and product development, as well as the work of an incredibly passionate team.”
As the food and beverage industry trends evolve, Formo’s commitment to innovation in the food and drink business positions it well to meet changing food and drink consumer trends and capitalize on the growing demand for sustainable, animal-free products.
