Karang Foodie, a local company based in Singapore, has completed an all-cash acquisition of INSEACT, the alternative protein company.
While other aspects of the transaction remain confidential, INSEACT Co-Founder Tim van Vliet has noted that this deal offers an exit strategy for both him and his Co-Founder, Michael Badeski. Simultaneously, Karang can leverage its pre-existing infrastructure, intellectual property, and customer base to propel its own expansion.
“Karang Foodie has a vision to support the alternative protein ecosystem whilst removing food waste in Southeast Asia. The acquisition of INSEACT will see Karang taking over the facility and using what INSEACT has developed to allow it to pursue its longer-term goal of combining synergies between the production of multiple insect species in Singapore. In the shorter term, Karang will be studying how different food waste sources may impact the output of BSF, translating to potential food sources for other species that will raise the value of the operations,” stated Vliet.
Vliet further explained that INSEACT had the opportunity to secure Series A funding, but the terms presented in the offer would have resulted in substantial dilution for the company.
“We preferred to sell the business than to take on the dilution.”
Both Co-Founders, Vliet and Badeski, have left INSEACT, while some employees have chosen to stay. Vliet has taken on the role of Vice President (Venture Scale) at Engie’s corporate venture-building division.
INSEACT specializes in the production of sustainable insect protein tailored for aquaculture, with an initial focus on shrimp feed. The company utilizes waste materials from palm oil operations as a primary resource to nourish the insects. This innovative approach establishes a complete circular economy by diverting waste from palm oil production away from environmentally harmful landfills and directing it to be bioconverted by black soldier flies (BSF).
The process yields three distinct products: XFprotein, a nutrient-rich animal feed ingredient derived from dried and ground black soldier fly larvae; XFoil, a purified insect oil extracted from the cultivated black soldier fly larvae; and XFfrass, a by-product resulting from the composting of black soldier fly larvae.
These protein products serve as feedstock for shrimp and fish, diminishing the dependency on wild-caught fish as the primary protein component in aquaculture feed.
The startup asserts that its operations have a carbon-negative footprint and generate zero waste.
INSEACT has established and currently manages a cutting-edge insect production and research facility located in Singapore, where the fields of biology and engineering have been seamlessly integrated and advanced.
In the year 2021, INSEACT secured an oversubscribed seed funding round, amassing a total of US$1.3 million in investment from a diverse group of backers, among them ADB Ventures, Loyal VC (Canada), and INSEAD Asia Angels Club.
Established in June of this year by Stephanie Kudus and George Foo, Karang Foodie is a company specializing in treatment and waste disposal solutions.
