Cape Town-based biotechnology firm Maltento has completed a $3.3m (R62m) equity raising that will enable it to scale up its technology and insect-based feed products for export.
The company mass farms black soldier flies, whose larvae are in high demand from animal feed industries in the US and the EU, where it used as a high-protein addition to chicken feed, chicken supplements and aquaculture. Processed larvae are also offered as a paste or powdered compound to enhance the taste of dog food in the EU.
The fundraising was backed by UK-based Sand River Venture Capital, which is now a shareholder in Maltento, joining Castleton Capital and a consortium led by former SAB Africa MD Mark Bowman to further strengthen the company’s access to expertise and long-term capital.
“With this capital raise and envisioned market expansion, Maltento hopes to increase its capacity to create jobs in SA by hiring up to 45% more staff members over the next five years,” Maltento commercial director Dominic Malan told Business Day.
“We will focus on optimising our pet and aquaculture digest formulations which we have successfully commercialised to the sum of 120 tonnes in less than 12 months,” he said.
The investment would support the company’s ambitions to become a “global functional ingredient player”, and the capital would be deployed into extending its production line and building a world-class management team, he added.
Maltento breeds black soldier flies and uses the larvae in various protein blends for animal feeds that are free of hormones and antibiotics.
The larvae have an exceptionally high protein content, and studies have shown that farmed fish fed the compound are far more resilient to pests and disease. Other animals that consume it, including chickens and dogs, have improved gut health thanks to the larvae’s anti-microbacterial properties.
The larvae also feed on barley waste and expired foods, and can be used to eliminate waste sustainably from a number of other industries including the beer and food sectors.
Based in Epping, Cape Town, Maltento’s plant employs 54 people to produce clean, functional nutrition for animal feed markets worldwide, including more than 15 tonnes of processed soldier fly larvae a month for the US.
The investment boost will enable the group to accelerate its unique approach to insect biotechnology and broaden its products to new markets.
Sand River partner Greg Robson said the group’s mission was to provide capital and support to businesses that will regenerate the natural world and deliver strong financial returns, which together will enable a collective, sustainable transition.
“Maltento represents a wonderful opportunity for us. They are comfortably the leading company in their field; are driven by an entrepreneur we immediately believed in; and have game-changing sustainability credentials,” said Robson.
Kilogram for kilogram, insect-based protein uses 95 times less natural resources than animal-based protein and by unlocking the functional benefits of insects, Maltento says it can create feed solutions that are better for animals, soil and the planet.
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