French Mycorrhizal Startup Mycophyto Raises €16 Million to Scale Soil Regeneration Technology
- Gauri Khanna
- 2 hours ago
- 3 min read
Too long to read? Go for the highlights below.
French agritech company MYCOPHYTO secured €16 million in Series A funding to expand production of mycorrhizal fungi biostimulants that improve crop water retention and yields
The company's AI-optimised fungal formulations demonstrated up to 20% improvement in plant water retention and yield increases reaching 45% in vineyards during drought conditions
Investment from French, Belgian, and Moroccan investors will fund the company's first factory and international expansion into Spain, Morocco, and West Africa
Drought cost French agriculture over €10 billion in immediate economic losses during 2025, with yield reductions reaching 30% in viticulture and market gardening. Against this backdrop, MYCOPHYTO, a French startup commercialising mycorrhizal fungi products, announced completion of a €16 million Series A funding round to scale production of biological solutions designed to improve crop resilience.
Symbiotic Fungi for Agricultural Performance
Founded in 2017 by co-founder and CEO Justine Lipuma alongside scientific partners, MYCOPHYTO produces biostimulants based on mycorrhizal fungi: microorganisms that form symbiotic relationships with plant roots. These fungi extend the effective exploration zone of soil, improving plant access to water and nutrients even in depleted soils. The company has developed proprietary production processes using artificial intelligence to optimise fungal mixtures tailored to specific soil conditions and climates.
The technology addresses a fundamental agricultural challenge. Mycorrhizal associations evolved over millions of years, with fungi providing expanded nutrient access whilst plants supply carbohydrates produced through photosynthesis. MYCOPHYTO's approach involves capturing this natural mechanism and deploying it through commercially viable formulations.
Field trials documented measurable outcomes. The company reports up to 20% improvement in plant water retention across multiple crops including grapes and tomatoes. Yield increases reached 45% in vineyards during the 2022 and 2025 growing seasons. The products also demonstrated potential for optimising chemical fertiliser application: relevant as regulatory pressure increases on synthetic inputs and sustainable agriculture practices gain traction.
Investment Structure and Production Plans
The Series A round attracted French, Belgian, and Moroccan investors. Innovacom and BNP Paribas co-led the financing alongside Deep Tech 2030, a fund managed by Bpifrance on behalf of the French government under the France 2030 programme. CDG Invest and Noshaq participated, with continued support from existing shareholders RSI and Crédit Agricole.
The capital will fund construction of MYCOPHYTO's first factory, incorporating sustainable technologies with state support through the France 2030 "Resilience and Agrifood Capacities 2030" initiative. Current production occurs at laboratory and pilot scale; the new facility represents a transition toward industrial volumes necessary for broader market penetration.
International expansion constitutes another strategic priority. MYCOPHYTO plans to develop operations in Spain and Morocco whilst establishing new distribution channels in Côte d'Ivoire and Benelux countries. The company currently serves French vineyards, market gardens, green spaces, and medicinal plant growers.
François Charbonnier, investment director at Bpifrance for Deep Tech 2030, characterised the investment as supporting a technology that simultaneously increases yields, improves drought resistance, and regenerates soils: addressing food sovereignty challenges prioritised under France 2030 since 2021.
Market Context and Technical Differentiation
Maha Keramane, responsible for BNP Paribas's Impact and Inclusion Accelerator, noted the startup's capacity to cultivate and transform fungi into different biostimulants adapted to specific crops and terroirs represents a unique market position. The company maintains a protected biobank; a collection of fungal strains serving as biological assets for product development.
The mycorrhizal biostimulant sector faces competition from various biological input providers, though MYCOPHYTO's AI-optimised formulation approach and tailored strain selection potentially differentiates its offerings. Whether these technical advantages translate into sustained market share depends on production costs, distribution efficiency, and agricultural adoption rates across target regions.
Lipuma characterised the funding as a final development phase for MYCOPHYTO as a young company, positioning the firm as an essential actor in tomorrow's agriculture. Demonstrating impact through measurable improvements (15% increased tomato production for market gardeners, 20% water savings enabling vineyard harvest preservation during drought) validates the company's role supporting producers facing climate challenges.
