Temasek backs produce-preserving foodtech startup’s $30m round

Apeel Sciences, a company that produces plant-derived coatings to keep produce fresh for longer, has raised US$30 million in a round participated by the International Finance Corporation (IFC), Temasek, and Astanor Ventures.

The startup plans to use the new funds to offer its products to smallholder farmers in emerging markets and connect them to new markets, including the US and Germany.

Photo credit: Pxhere

Based in California, Apeel uses materials found in the skins, peels, and seeds of all fruits and vegetables in its protective coatings. The company claims that by using its technology farm produce can last twice as long, enabling farmers to sell more and consumers to eat more of what they buy.

“It’s a misconception that people go hungry because we don’t grow enough food. The issue is the intermittency of supply and an inability to convert perishable assets into economic value,” said James Rogers, Apeel’s founder and CEO of Apeel.

He also thinks it’s also nearly impossible for smallholder farmers to sell their produce to marketplaces that will pay before they go bad. While smallholder farmers managing up to five hectares produce over 50% of the global fruit supply, agricultural workers make up 65% of all lowest-earning working adults, according to Apeel.

To help with this, the company said it has partnered with IFC to roll out programs for smaller-scale farmers that aims to bolster supply chains in sub-Saharan Africa, Mexico, Central and South America, and Southeast Asia.

Today, Apeel is available in the US, Germany, and other countries across Europe.