The São Paulo, Brazil-based company Nude raised R$25 million (about US$4.8 million) in a Series A led by Vox Capital. With this amount, the foodtech that produces oat milk has already raised US$5 million in funding, according to Crunchbase.
Also participating in the round were Lever VC, who specialize in alternative proteins; Ecoa Capital, Ana Sarkovas, Angel Ventures and Endeavor Catalyst.
So far Nude only has a presence in Brazil. However, it wants to expand to other Latin American countries and become the leading brand in this type of dairy alternative.
Next Steps: Grow, Grow, Grow
Founded in 2020, in one year of operations Nude produced 500,000 liters of oat milk and reached 1,100 points of sale. This year, it will seek to reach 3.5 million liters and more points of sale, for which the capital from the new round will be useful.
In addition to investing in equipment and brand building, part of this new investment will be used to neutralize carbon dioxide (CO2) emissions. This will be done through forest preservation projects and the purchase of reforestation credits.
The company, founded by Giovanna Meneghel and Alexander Appel, also plans to reach other Latin American countries such as Uruguay, a small market with a high milk consumption that will serve to experiment with its products.
However, the company clarified that it sees expansion in the region as viable only in 2023. For now, it wants to concentrate on continuing to grow in Brazil. In fact, this month Nude will launch an oat milk cream, which will come in individual and 1-liter containers.
Nude Will Seek to Lower Its Prices
Foodtech knows that plant-based products are not always the most affordable. In fact, a carton of Nude costs between R$17 and R$23 (US$3.8 and US$4.44). This is compared to the average R$4.20 (US$0.75) for a liter of cow’s milk.
However, the company bets that it is possible to reduce its cost by investing in research, and hiring more research and development (R&D) professionals to find new microorganisms. This could enable them to make more with the same raw material.
In addition, Nude will look to partner with other companies in its industry to get the same tax treatment as animal-based dairy products.
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