Hubcycle Raises $16.3 Million to Turn Food and Cosmetic By-Products into Innovative Ingredients

Hubcycle has secured €15 million in its third fundraising round, driving the food sector's shift toward sustainability. This funding boost enables Hubcycle to turn food waste into competitive, eco-friendly ingredients, reducing more CO2 than today's largest carbon capture plant.

With the latest round, supported by new investors like ETF Partners, Techmind, and Raise, plus established backers Daphni, Citizen, Swen, and Bleu Capital, Hubcycle aims to scale globally. Building on prior rounds totaling €5 million, the company strengthens its leadership, expanding its reach in food by-product upcycling and doubling on innovative tech.

The €15 million will accelerate Hubcycle's mission to identify 4,000 new waste sources and launch 400 sustainable ingredients. This fresh capital enhances data-driven technology, leveraging 800 data points per waste source while funding quality assurance, optimized logistics, and lab advancements for by-product applications. Hubcycle, which tripled growth in 2023, is on track to repeat this momentum in 2024 by hiring 80 new employees and pioneering a circular supply chain model.

Looking globally, Hubcycle plans to prevent 10,000 tons of CO2 emissions, solidifying its role in sustainable upcycling. Having achieved early profitability in 2023, the startup aims to become a primary lever for CO2 reduction in client supply chains, helping them transition to circular industrial practices on a larger scale.

Founded in 2016 by Julien Lesage, Hubcycle transforms unused by-products, like fruit peels and oil residues, into valuable raw materials. With products averaging 30% cost savings over standard ingredients, Hubcycle valorizes 290 million tons of potential waste from industries, creating a green, circular, and profitable model. Hubcycle has repurposed 600 tons of by-products, saving 4,000 tons of CO2, and counts clients like L'Oréal and Givaudan among its growing customer base.

In 2005, ETF Partners led sustainability-focused venture capital, supporting Europe's eco-driven entrepreneurs. Believing in profit with purpose, ETF Partners fuels ventures like Hubcycle to address environmental challenges, fostering a more sustainable, impactful future.

Through this funding, Hubcycle is positioned as a transformative force in sustainable food upcycling, leading the charge in reducing waste and enhancing worldwide sustainability in the food industry.

"This new fundraising will enable us to accelerate Hubcycle's R&D capabilities, positioning us as an international reference in food upcycling."

Julien Lesage, President and Founder of Hubcycle

"We are very enthusiastic about leading this investment round for Hubcycle, "said Remy de Tonnac at ETF Partners.

"Hubcycle's innovative approach to upcycling food by-products is not just a significant business opportunity, but a crucial step towards addressing the global challenges of food waste and climate change. Their technology has the potential to transform the food industry, creating a more sustainable and efficient supply chain. We're impressed by Julien's vision, the company's measurable impact on CO2 emissions, and their ability to turn waste into valuable, competitive products. This investment underscores our commitment to supporting companies that drive positive environmental change while delivering strong business results. We look forward to supporting Hubcycyle as they scale their operations and continue to innovate in this critical sector."

Remy de Tonnac, Senior Partner, ETF Partners