German food-tech start-up Kynda has announced the successful closure of a €3 million seed funding round.

The funding round was led by venture capital firm EnjoyVenture, with support from German poultry giant PHW Group, which expanded into the alternative proteins market in 2023. Clima Now and Cell Invest also participated in the round.

In a LinkedIn statement sharing the news, Kynda said the funding will accelerate its mission of transforming food industry byproducts into high-quality, sustainable mycoproteins.

The investment will enable Kynda to expand production at its new facility in Jelmstorf, Germany, opening this year. This will enable the start-up to support industrial partners in creating sustainable food, feed and bioproducts with its plug-and-play fermentation technology.

Kynda’s production process leverages mycelium, the root structure of fungi, to yield a high-protein and fibre-rich mycoprotein ingredient within a 24-48 hour process.

Its process involves blending underutilised crop biomass with fungi inside a bioreactor, resulting in a mycelium-based ingredient that can be used in the development of a range of clean label meat alternatives, providing an authentic meat-like texture and umami flavour.

Kynda said its strategic partnership with PHW Group marks a ‘major milestone’ for the company, benefitting from the meat specialist’s expertise in fermentation technology, bioprocessing and ingredient development.

Franziskus Schnablel, co-founder of Kynda, said: “This strategic partnership creates exciting synergies, accelerating the implementation and commercialisation of our technology and superfood raw materials. With PHW’s support, we are well-positioned to drive sustainable innovation at scale.”

Nathalie Moral, CEO of investor Clima Now, commented: “Kynda's innovative mycelium technology is a game-changer. By converting agricultural by-products into protein within 24 hours, they're slashing greenhouse gas emissions and water usage. We're proud to support this breakthrough in sustainable food production.”