Ynsect is determined to achieve profitability at the earliest.

Ynsect, a French insect farming startup, has raised €160 million in equity financing but is also cutting 70 jobs, around 20% of the company, to fast track its achievement of profitability.

The funding comes from a combination of historical and new investors, although the company declined to say who they are or how the funding will affect its $600 million valuation. (Sifted)

The plan to achieve profitability involves closing production facilities in the Netherlands, resulting in 35 job cuts, and focusing on smaller, less software-intensive facilities and more profitable products.

Ynsect has redirected its focus from insect production for animal feed towards manufacturing insect-based food products for human consumption, pet food, and plant food.

The revised strategy also includes working more in joint ventures and partnerships, largely outside of Europe. It also involves cutting engineering, HR and finance positions, and hiring around 35 to 40 engineering roles outside of Europe over the coming year.

The decision by Ynsect to hasten its path to profitability by cutting jobs and altering its strategy aligns with a larger trend among European startups to hasten becoming profitable in response to a market where funding is becoming increasingly difficult to come by.

The company’s last funding round was a $372 million Series C in 2021.

Related Story:  Ynsect, Which Farms Insects, Snags $372M