Berlin-based fermentation startup Formo has successfully raised a $61 million Series B funding round and has simultaneously launched its innovative cheese alternatives featuring koji protein in over 2,000 REWE, BILLA, and Metro stores across Germany and Austria. This significant milestone marks a pivotal moment for the company, which has been trailblazing in the field of sustainable dairy alternatives.
The funding round attracted a mix of existing and new investors, underscoring the growing interest in climate tech and sustainable food solutions. Existing backers such as Foodlabs, EQT Ventures, Lowercarbon Capital, Happiness Capital, Elevat3 Capital, M Ventures, and Grazia Capital reaffirmed their commitment to Formo. Meanwhile, new investors including Sazaby League, Seven Ventures, Woodline Partners, Indiposa Investments, The Nature Conservancy, and REWE Group, Europe’s second-largest retailer, have joined the fold.
“Few European companies are raising such large rounds within climate tech,” said Sandra Malmber, Partner at EQT Ventures. “A key success factor [behind the large raise] was proving commercial traction, which is a rarity for this type of company at this point in its lifetime.”
Formo, originally founded in 2019 as LegenDairy Foods, is well-known for its pioneering work in engineering microbes to produce dairy proteins like casein through precision fermentation. However, the company’s first range of cheeses employs a different technology: biomass fermentation using Aspergillus Oryzae, commonly known as koji. This naturally occurring fungus has a storied history in food production, particularly in the creation of fermented products such as soy sauce and miso paste.
Christian Poppe, Formo’s head of global public affairs and general manager for APAC, explained, “We are using Non-GMO Aspergillus Oryzae (koji) in a biomass fermentation process. We harness the entire biomass produced by the fermentation process to create dairy alternatives. Koji has a long history in food production and offers a unique profile for plant-based cheese products. Its versatility allows us to produce a clean, nutritious base, which we can build upon to create innovative and sustainable dairy alternatives. We’ve been working on this innovation for the past two years.”
The result is a range of plant-based cheeses, including varieties like ‘Frischhain’ and ‘Camembritz,’ which closely mimic the texture and taste of traditional cheese. Koji’s neutral flavor and high functionality make it an ideal ingredient for these cheese alternatives. However, Poppe acknowledged that koji does not yet offer the same stretchability and meltability as traditional dairy proteins, a gap that Formo aims to fill with its precision fermentation technology.
Formo plans to debut cheeses containing casein proteins via precision fermentation by 2025. “To ensure that we bring that extra meltability to consumers as fast as possible, we are doubling down on precision fermentation to create bioidentical casein proteins, which will offer the melt and stretch functionality that people expect from traditional dairy cheeses – as we always have done,” Poppe stated.
For now, Formo is focusing on launching its own consumer products and does not plan to supply these proteins as B2B ingredients. “Our vision goes beyond that—we want to be the largest cheese company of the future. We aim to become a real challenger brand by offering convincing, high-quality end consumer products that redefine what cheese can be,” Poppe added.
Regarding manufacturing, Formo is currently not prioritizing building its own facilities. Instead, the company is leveraging partnerships with traditional cheese manufacturers to scale production. “By partnering with traditional cheese manufacturers, we can further ferment our ingredients into cheese alternatives using conventional production methods. Our goal is to expand with these strong partners,” Poppe explained.
On the regulatory front, Formo is actively working on securing self-GRAS status for its casein proteins, while koji, given its established history in food production, does not require special approval.
Formo’s ambitious strides in the realm of sustainable dairy alternatives highlight a broader shift towards innovative, climate-friendly food solutions. As the company continues to expand and develop its product offerings, it is poised to become a formidable player in the global cheese market.