German food-tech start-up Formo has received a €35m loan from the European Investment Bank (EIB), to accelerate the production of its animal-free cheese products.
The EIB quasi-equity debt loan will enable Formo to further develop and scale its fermentation processes for producing alt-dairy and egg-based products.
Founded in Berlin, Germany, in 2019, Formo uses micro-fermentation and precision fermentation technologies to create its products. Micro-fermentation involves using naturally occurring microorganisms, such as Formo’s Koji mushrooms, to produce tasteless proteins without modifying the microorganism itself.
Formo’s work in precision fermentation has also enabled it to develop biodentical milk proteins, particularly caseins, with good melting properties. It combines traditional fermentation with the latest synthetic biotechnologies to produce these caseins efficiently and on an industrial scale.
Formo is currently undergoing the approval process for marketing its precision fermentation products in the US. It is also working toward conducting the regulatory process in its European home market.
As a first step, Formo has already launched its micro-fermentation product line, with several flavours of its Frischhain product distributed via Metro and Rewe supermarkets in Germany and Austria since September 2024.
Other cheese alternatives, such as Greek feta and blue cheese, are currently in the scaling process alongside a scrambled egg substitute and baked goods.
Raffael Wohlgensinger, founder of Formo, said: “We are very pleased that the EIB is confident of the strength and scalability of our innovation. We want to show that innovative European companies can move from smart ideas to scaling up and successfully marketing their technologies.”
He added: “We also know that fermentation processes will make a decisive contribution to the resilience of the European food system. This financing sends a strong signal across Europe and confirms our strategy.”
The EIB loan is supported by the InvestEU programme, expected to unlock €372 billion of additional investment in new technologies by 2027. It follows Formo’s successful €61 million Series B funding round in September 2024, bringing the company’s total funding to over €135 million.
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