Mekong Capital announces that the Mekong Enterprise Fund IV (MEF IV) invested US$25 million into Entobel, part of the US$30 million funding round.
Entobel is a Vietnam-based startup company producing insect-based ingredients from Black Soldier Flies for various industries including the animal feed, pet food, and fertilizer industry. Currently, Entobel has 3 main products, which are insect meal, insect oil, and organic fertilizer.
In early 2019, Entobel constructed one of the largest insect production sites in the world in Dong Nai province, Vietnam with an annual capacity of 1,000 tons of insect meal. Looking forward, Entobel’s next plant will be operational by 2023 and will respond to rising global demand while supporting the reduction of our global food chain’s environmental footprint.
Being based in Vietnam provides Entobel with a significant and sustainable competitive advantage thanks to the tropical climate condition, abundant sources of feedstock from Vietnam’s agriculture activities and F&B production, and the growing aquaculture market being the main application of insect protein ingredients.
After 8 years, Entobel has done extensive R&D to perfect the technology to convert food by-products to insect protein on a large scale with capital efficient technology. Having achieved these technological breakthroughs, the company is now ready to scale up its production.
Entobel’s vision is to become a leading insect protein producer in the world.
Mr. Gaetan Crielaard and Alexandre de Caters, Co-Founders of Entobel, said:
“We are proud to partner with Mekong Capital and Dragon Capital to build a world class plant before replicating the model globally. We are convinced our capital efficient and robust technology is the right approach to massive scaling up.
With our growing blue chip customer base as well as world class industrial partnerships for breakthrough R&D activities including new product developments, we ensure our market relevance and competitiveness in the long run”.
Mr. Sjoerd Zwinkels, Mekong Capital’s Deal Leader for Entobel told Asia Insiders:
“We are very excited to partner with Entobel to achieve the exciting vision of becoming to the leading insect protein producer in the world. The Entobel’s team is solving one of the big problems in the world by using insects to create a sustainable protein, which will reduce the environmental footprint of our global food chain, while making the food value chain safer and more sustainable. This is a true circular economy as they take by-products, convert them to protein, oil, and organic fertilizer. There is virtually no waste”
“We believe in the founders, Gaetan and Alexandre, who showed so much grit and perseverance to build one of the largest insect protein production companies in the world today, starting from a small farm in the Mekong Delta to a large industrial facility in Dong Nai. They have proven that insect derived ingredients can be produced on an industrial scale with high quality and being cost-effective compared to fishmeal.” Sjoerd Zwinkels added.
Entobel was founded in 2013 by two Belgian entrepreneurs, Gaëtan Crielaard and Alexandre de Caters, who realised Vietnam’s significant and sustainable competitive advantage in the business, thanks to its tropical climate, and abundant sources of feedstock from agriculture activities, F&B production and growing aquaculture market.
The company is planning a global expansion of its insect protein technology, having had a “growing blue-chip customer base” and industrial partnerships for R&D activities, the founders said in a joint statement.
Entobel’s technology and products “will reduce the environmental footprint of our global food chain, while making the food value chain safer and more sustainable”, said Sjoerd Zwinkels, Mekong Capital’s deal leader for Entobel.
MEF IV was launched in 2021 as Mekong Capital’s largest fund. It continues to focus on retail, education, restaurants, consumer services, FMCG and healthcare like its predecessor funds.
The vehicle has backed six companies prior to Entobel, including chocolate crafter Marou Chocolate, cosmetic retailer HSV Group, water purifiers manufacturer Mutosi Group, proptech startup Rever, probiotics producer LiveSpo Global and genetic testing company Gene Solutions.
Mekong Capital has raised nearly $527 million in total across four funds in its flagship series and the 2007-vintage Vietnam Azalea Fund, which invests in pre-IPO opportunities.
The firm has completed 42 private equity investments, of which 27 have been fully exited.