Austrian food-tech company Kern Tec has raised €12 million in Series A funding, supporting scale-up of the production and commercialisation of its sustainable ingredients.

Kern Tec utilises upcycling to produce food ingredients for plant-based dairy and confectionery applications.

The ingredients are derived from upcycled pits of stone fruit, such as apricots, plums and cherries. The company said that by processing the pits, of which 500,000 metric tons are land-filled each year in Europe alone, it contributes to a circular and more resilient food system.

The €12 million Series A round was led by Telos Impact, with participation from the PeakBridge Growth 2 fund and the European Innovation Council (EIC) fund. In addition to equity financing, the company has secured significant local and international grants.

Founded in 2019, Kern Tec’s proprietary process enables it to obtain valuable oil and protein from the seeds of the stone fruit pits that are currently most neglected. The ingredients are then transformed into a base compound for alternative dairy products such as plant-based milk, yogurt and cheese.

The company revealed that it has already signed purchase orders for its ingredients worth millions of euros in revenues over the coming years.

Erich Sieber, co-founder and general partner at PeakBridge, said that innovations in food ingredients play a pivotal role in transforming the food industry toward heathier and more sustainable products at affordable costs.

“Kern Tec’s initiatives pave the way for responsible production and consumption, while also offering enhanced flavour possibilities,” Sieber added. “We stand firmly behind Kern Tec as they lead the way in this domain, and we are honoured to be part of their exceptional journey.”

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