E Green Global (EGG), a South Korean agricultural biotech company, has secured KRW 10 billion (US$9.2 million) in a funding round from YD-SK-KDB Social Value Fund.
EGG plans to use the capital to expand its production facility to supply seed potatoes to its US and Chinese clients, with whom it has signed a contract worth KRW 100 billion (US$92 million).
The new round of financing will also be used for research and development (R&D) in areas including technology related to biological resources, application of technologies, such as AI and smart farming in agriculture and integrated research on other food crops.
EGG is an agritech company established based on the plant factory platform to increase the productivity of various agricultural produce.
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The startup aims to lead the global market for seed potatoes by breaking the inherent limits of its supply chain, which is crucial to enhancing its production.
Through its decade of R&D and market development, EGG claimed it has scored the world’s first-ever success in commercialising the Microtuber Technology (MCT), which increases the productivity and production sustainability of potatoes.
This has enabled it to secure long-term contracts to supply seed potatoes across China and the US while expanding its business to Europe and the Middle East.
Jointly established by SKS PE (a subsidiary of Korean conglomerate SK Group), Korea Development Bank and impact venture capital firm Yellowdog back in November 2019, the YD-SK-KDB Social Value Fund invests in social startups that contribute to the pursuit of the United Nations Sustainability Development Goals.
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“Nobody had been successful in commercialising the MCT for decades, yet EGG made it possible with its willpower and dedication to its mission of alleviating the world hunger,” a spokesperson from the fund said.
“We look forward to the positive social impact EGG will make, as it contributes to resolving the global food problem by increasing the quality and productivity of major food crops as well as contributing to developing crops that are resilient to the climate change,” he further added.
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Image Credit: Photo by Naseem Buras on Unsplash
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