SINGAPORE, Mar. 3, 2021 /BusinessTimes/ -- Singapore-based agrifoodtech startup Nutrition Technologies has raised US$5 million in a pre-Series B funding led by Hera Capital, with participation from existing investors Openspace Ventures and SEEDS Capital, the investment arm of Enterprise Singapore.

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To date, the company has raised US$14 million. It will use the fresh funding to fund research and development (R&D) and to enter new markets in South-east Asia.

Nutrition Technologies has opened its first industrial-scale insect protein factory in Iskandar Puteri, Johor, Malaysia. Since 2014, the company has been using black soldier flies to turn low-grade food waste and organic by-products into proteins and oils as a sustainable alternative to fishmeal, an ingredient commonly used in animal feed.

The factory, which spans 2.5 hectares and has 150 employees, cost US$7 million to build. The company is aiming for the facility to be carbon negative at full capacity.

Nutrition Technology is targeting to raise US$30 million in Series B funds in Q3. The round will be used to increase production capacity 10-fold to meet its current pipeline demand. Its is looking to expand production in Malaysia while establishing new industrial-scale plants in Thailand, Vietnam and Indonesia. An R&D centre will be established in Singapore, where it can connect with industry partners and investors.

"Over the next 10 years, we plan to build a large network of insect farms across the region, supplying a new high-quality insectmeal to support the growth of aquaculture and livestock production in Asia,” said Tom Berry, co-chief executive and co-founder of Nutrition Technologies.