If you’ve ever ordered a meal kit made from organic ingredients or had a taste of the infamous plant-based burger, chances are you’ve consumed the products of “Food tech”.
Though it may not be considered mainstream as of present days, the Foodtech trend is undoubtedly on the rise and will become more prevalent across the globe as people are becoming more cautious about health and the environment.
Startups in the food and agricultural space are one of the main driving forces of Foodtech. With the issues of food waste that is harming the environment and triggering concerns for food shortage, these startups aim to search for solutions and offer innovative approaches to tackle the problems. Apart from attempting to save the world, oftentimes, these food products are intended on providing nutritious and healthier diets for the customers.
Given the rising interest in sustainability, the current position in global food production, and the advancement of modern food trends, Foodtech is here to stay and will continue to expand until its products are no longer a “niche”.
Why should we be concerned about “Food Waste”?
Food waste is a persistent problem and one of the biggest concerns facing humanity right now. Imagine bringing home 3 bags filled with groceries from the supermarket and throwing one away when all the goods in there are still perfectly fresh and consumable. That is what happens when we talk about the world’s “Food Waste” situation. Based on the statistics by the United Nations, humans are throwing away one-third of all the food in the world. That amounts to 1.3 billion tons of food that end up in the trash. The depressing fact is that this is all taking place while over 800 million people (1 out of 9 people) are suffering from hunger.
When we talk about addressing the issues of climate change or global warming, the first few things that come to mind would be reducing the use of non-renewable energy or recycling. Unbeknownst to many of us, food waste is one of the largest contributors to global warming as the disposal of food waste in landfills leads to a high level of methane emissions (8-10%), affecting climate change. Every year, 3 billion tons of greenhouse gases are emitted from food waste.
Food waste is not only causing negative environmental impacts, but also economic and social impacts. While the waste occurs in every stage from food production, distribution, and consumption, customer-facing businesses are the biggest origin of food waste, accounting for 85%.
Reducing the amount of food wasted at restaurants, retailers, or in the household would benefit our planet and humanity in countless dimensions. The problem may seem out of hand, but there are people out there who are passionate about finding the right solutions to this global crisis through Food tech.
Investment in the Food Tech Sector
With the shift in consumer behaviors, increased attention toward sustainability, and the overall supply chain vulnerabilities, startups in the Food Tech scene have been innovating and launching novel products and services - catching the eyes of investors.
The growing opportunities in the Food tech area stimulated a large sum of investments into this space, especially in recent years. In 2021, PitchBook reported that the global Food tech industry raised almost $40 billion in venture funding across over 1,300 deals and the growth rate of the global market worth of Food tech is expected to reach $45.9 billion in 2026.
AgFunder reported the investment figure in ASEAN’s based Foodtech and Agtech startups at $26.1 billion in 2020 increasing by 15.5% year-over-year. While the number may not seem significant compared to investments being made in the US or Europe, it represents a drastic growth and a bright future for this industry.
Consumers are willing to pay a premium for Food tech products that offer convenience, health, and environmental benefits. Considering the enormous opportunity in revolutionizing the food system, the funding activity in this space is without doubt, worth keeping an eye on.
Xpdite Capital Partners Join Forces with Yindii
Collaboration and contribution to the flow of investment are the keys to promoting a sustainable and healthier food system. Investors play a significant role in shaping new ideas from entrepreneurs, connecting them to the value-added ecosystem of partners, and pushing the boundaries toward growth.
Xpdite sees the values of Yindii that support the future of food through game-changing solutions. We recognize the severity of the food waste situation in Thailand and globally and we are prepared to back Yindii with the capital, access to the industry’s network, together with our knowledge and experience to ensure the accomplishment of their missions.
Why We Invested in Yindii?
Yindii is a Thailand-based startup seeking to rescue unwanted food and tackle the challenge of food waste at restaurants and retailers through a surplus food marketplace.
The food surplus from restaurants or retailers is available on the marketplace application for consumers to purchase. These restaurants and retailers registered on the platform gather the food surplus at the end of the day, creating “surprise bags” of quality leftovers that are offered at a highly discounted price.
In Thailand, out of 27.4 million tons of waste, food waste accounts for 64% or 17.6 million tons. Though, it is impossible to entirely eradicate food waste, the portion of food waste that is still perfectly consumable should be easily accessible to those who see its values and not be dumped in landfills.
Through this approach, Yindii is not only offering consumers high-quality food at an affordable price but is also providing a solution for restaurants and retailers to wrap up their stock without waste and able to generate revenue from the surplus. This allows both consumers and food businesses to make a difference and contribute to a greater cause. It’s a win for everyone!