Loopworm: Leveraging Nature's Upcyclers-Insects!

While much of the climate discourse focuses on energy, it is worth remembering that agriculture and waste account for over 20% of the world's GHG emissions and are among the hardest-to-abate sectors.

Enter today's start-up Loopworm which is focusing on upcyclcing agri-waste. Founded by IIT Roorkee alum who were passionate about waste management and upcycling, they settled on insect biotechnology as their approach.

While there are several companies working on insects as an alternative protein to meat (which is important!), one aspect I like about Loopworm is their diverse approach to monetization.

Loopworm is investing heavily in R&D (60% of their staff and expenses) to diversify the protein sources as well as applications, but has started with silkworm pupae and Black Soldier Flies on Agri-waste. For silkworms, the actual silk represents only 20% of the mass-the remaining 80% is waste. Loopworm can take this waste and reprocess it as animal feed to displace higher-carbon alternatives such as fish meal and soybean meal.

Not only is upcycling a waste product cost competitive (and good for the environment), but it can also improve animal health. Insect proteins provided different amino acids for a more balanced diet and additional contains chitin, which has numerous health benefits. Loopworm is working on further research to offer different amino acid and nutrient profiles (such as particular fatty acids) which can be used in higher value outputs in pet foods, cosmetics and nutraceuticals.

Loopworm's factory has been operational for just 4 months and they have already avoided over 15,000 tonnes of CO2 from agricultural waste. As they scale and expand, this potential will only grow, while also adding additional value to business consumers.

One final note. Loopworm is also a great example of the "flywheel" effect. As more and more entrepreneurs and scientists choose to stay in India (or come back to India) they form the core of investors, mentors, and inspiration for the next generation of startups. In Loopworm's case, I was introduced by my friends at Log9 (who I previously wrote about), who as IIT Roorkee seniors have mentored and invested in Loopworm. I expect this sort of process to become more and more common as the ecosystem continues to grow.

Building on the successful make-in-India story, Loopworm is well-positioned not just for the India market but for developing new products and applications for a global audience. I can't wait to see their insect-based proteins displace carbon all around the world.

Disclaimer: I am an indirect investor in Loopworm as an LP in the Climate9ers Capital Fund