Sweden-based food technology company Saveggy, has raised €1.76 million (US$1.87 million) to launch its plant-based packaging alternative for fresh fruit and vegetables at an industrial scale.

The investment round was led by impact investor Unconventional Ventures, with contributions from the Federation of Swedish Farmers (LRF) Ventures, Almi Invest GreenTech and industry angels.

“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 our first product on an industrial scale.”

Fighting food waste
Approximately 45% of fruit and vegetables are wasted globally each year, according to the company, contributing heavily to climate change, which is why the company has developed an edible coating that increases the shelf life of fresh fruits and vegetables.

To combat fruit and vegetable spoilage, producers wrap them in plastic, contributing to plastic pollution and microplastic contamination in produce.

Saveggy’s layer uses plant-based sources such as canola and oats, acting as a protective shield. The solution’s layer is thin and invisible, prevents moisture loss, slows down oxidation and helps retain the product’s firmness and appeal, enabling a longer shelf life.

The innovation can be seamlessly incorporated into agricultural production since it can be easily applied by dipping or spraying after harvest, says the company.

“Our investment in Saveggy was driven by the impressive credentials and substantial expertise of its founders,” asserts Thea Messel, general partner at Unconventional Ventures. “Its 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.”

Scalable solution for existing value chain
Martin Alexandersson, investment director at LRF Ventures, says that leveraging the resources of LRF, with a membership of 130,000 farmers and an extensive network within the food system, the company is dedicated to supporting Saveggy.

“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,” adds 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.”