- Singapore’s Shiok Meats merges with Umami Bioworks in stock deal.
- Companies faced funding challenges amid cultivated meat downturn.
- Merger consolidates Southeast Asia’s alternative seafood industry.
Umami Bioworks acquires Shiok Meats
Two Singapore-based cultivated seafood startups, Shiok Meats and Umami Bioworks, are merging in a stock deal that will see Umami Bioworks acquire all of Shiok Meats’ assets.
Mihir Pershad, Umami Bioworks’ founder and CEO, will lead the merged entity, which will retain the Umami Bioworks name and the Shiok Meats brand. The transaction is set to close in the coming weeks.
Challenges in raising capital
The merger comes amidst a sharp decline in global funding for cultivated meat companies in 2023. Pershad noted that Shiok Meats struggled to raise the next phase of capital, and Umami Bioworks’ B2B, asset-light model provides a clearer path forward without needing a large raise.
Founded in 2018, Shiok Meats focused on cell-based crustacean products and raised US$20.7 million in total disclosed funding, its latest being a bridge round in 2021.
Umami Bioworks, which focuses on high-value and endangered species like grouper and eel, has raised one disclosed round of funding – a US$2.4 million bridge investment in 2022.
The deal is a significant development for Southeast Asia’s alternative meat industry, particularly in Singapore, where the government is working on regulatory frameworks for novel foods.
This has attracted foreign startups and led to the growth of local players like Meatiply. Last year, Shiok Meats lost half of its team following layoffs and employee departures due to doubts about the company’s future.
To read the original article: https://www.techinasia.com/sg-altmeat-maker-shiok-meats-set-merger-umami-bioworks
