Saveggy has received €1.76 million in investments from Unconventional Ventures, LRF Ventures, Almi Invest GreenTech, and industry angels for its edible, plant-based coating – a solution hoped to extend the shelf life of fruits and vegetables.
It is thought that 45% of fruit and vegetables are currently being wasted across the global supply chain. Their decomposition is said to be a major contributor to climate change.
As such, Saveggy has tailored its first product on the market towards cucumbers. The solution involves harvesting, washing, and drying the crop, at which point it is coated with an invisible layer of additive-free formula consisting of canola and oats, then delivered to shops.
Right now, the Saveggy technology platform claims to be the only alternative to plastic packaging that offers a comparable shelf life for food products; as well as the only available edible alternative to comply with EU regulations, specifically for fruits and vegetable with edible peels.
As part of its B2B model, it targets packing hubs, taps into a €400 billion Total Addressable Market, and sees an immediate Service Obtainable Market of €1,33 billion in Europe, the company reports.
“We are very pleased to have gathered a team of impact investors who share our mission to Help the world waste less,” says Arash Fayyazi, co-founder and CEO of Saveggy. “We believe that freshness, the health of our planet, and the well-being of people should always remain uncompromised. With this financing round we will launch at industrial scale our first product.”
“Our investment in Saveggy was driven by the impressive credentials and substantial expertise of its founders,” explains Thea Messel, general partner at Unconventional Ventures. “Their innovative technology tackles the significant challenges our food systems face.
“We were particularly impressed by the founders’ perseverance, having refined their formula multiple times to meet the highest standards. This unwavering commitment to innovation and sustainability aligns perfectly with our mission as impact investors and made our decision to partner with them clear.”
Martin Alexandersson, investment director at LRF Ventures, continues: “We are excited and proud to support the team at Saveggy and their innovation in reducing food waste, advancing sustainable agriculture, and proactively complying with upcoming plastic waste regulations.
“Leveraging the resources of The Federation of Swedish Farmers – LRF, with a robust membership of 130,000 farmers and extensive network within the food system, we are dedicated to supporting Saveggy, driving significant impact.”
“When we invested in Saveggy two years ago, we could see the huge sustainability and business potential, based on the scalable innovation tapping into the existing value chain,” says Karin Edström, investment manager at Almi Invest GreenTech. “After spending 24 months finalizing the platform technology, fine-tuning the first product for cucumbers, and building relationships with stakeholders in the value chain, this strong founder team is now ready to commercialize.
“I’m therefore very happy to welcome these relevant and committed co-owners to support Saveggy in this next important phase.”
Saveggy was founded in 2020 by Arash Fayyazi and chief innovation officer Vahid Sohrabpour. Both are considered co-founders of the company and combined their packaging industry experience with their respective backgrounds in applied physics, logistics, and processing.
Sohrabpour concludes: “Arash and I first connected in 2009 at Tetra Pak, and our paths converged again in 2020 founding Saveggy amidst the challenges of COVID-19. With the invaluable early backing of Lund University and the cutting-edge resources at SmiLe Incubator labs, we relentlessly refined our product to achieve the highest quality.
“Despite limited access to university labs during the pandemic, we persevered by renting equipment and conducting the tests in a basement. The financial and professional support from Lidl – one of the world’s top 5 retail groups – was instrumental in developing a superior product, while our collaboration with ICA – the largest Swedish retailer – helped validate our innovation.
“Today, with our production facility secured, we stand ready to make a significant impact in waste reduction on a large scale. Thanks to this investment, we’re thrilled to introduce our groundbreaking technology to the world.”
Last year, Saveggy received a Eurostars grant exceeding €440,000 to build upon its coating, which was set to be used by supermarket chain ICA and fruit and vegetable producer organization Odlarlaget.
It also signed a partnership with odlarna.se to develop both production and packaging lines and an application technology for its coating. The project was supported by the European Agricultural Fund for Rural Development (EAFRD) through the Agricultural European Innovation Partnership, with a commercial launch scheduled for 2024.
Meanwhile, a funding round taking place earlier this year saw Xampla raise the equivalent of €6,466,250 to expand its biodegradable, food-safe Morro Coating for takeaway packaging, sachets, and cups into new markets – a move hoped to help companies phase out single-use plastics.
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