Biotech startup BacAlt Biosciences has raised Rs 18 crore in a funding round led by early-stage investment firm Avaana Capital.
The round also saw participation from Lubrizol InnoVentures, the innovation arm of global speciality chemicals provider Lubrizol.
The startup will use the funds to scale R&D processes, build pilot production facilities, expand its team, and develop go-to-market strategies for geographic expansion.
“Just getting rid of packaging or making your packaging recyclable or biodegradable is not good enough. We have to think about formulations. Almost 87% of the top 10 best-selling products contain microplastics in their formulations. That’s what we are changing,” Shruti Kutmutia told ET.
Founded in 2023 by Kutmutia and Pranav Nair, the Bengaluru-based startup develops sustainable alternatives for conventional speciality ingredients by producing biopolymers from agro-industrial waste through bio-manufacturing.
The company creates solutions for home care, personal care, agrochemicals, nutraceuticals, and pharmaceuticals to replace petrochemical and synthetic inputs with sustainable, high-performance, and cost-efficient ingredients, it said. Biopolymers find applications across sectors such as skincare, wound treatment, haircare, and agriculture, among others.
“The biopolymers can only be produced by bacteria and cannot be replicated chemically. These products were expensive which made them inaccessible to the mass market. Our products make them affordable and accessible while maintaining cost neutrality with what companies currently use,” said Kutmutia.
This space has attracted venture capital interest, with several biotech startups, including Peelon, GreenGrahi, and Zerocircle, securing funding in recent months.
Commenting on the investment, Shruti Srivastava, investment director at Avaana Capital, said, “By combining proprietary fermentation platforms with circular use of agricultural waste, BacAlt is delivering ingredients that meet the performance and cost thresholds required for scale in FMCG.”
“With Lubrizol’s expertise and global network and BacAlt’s pioneering bio-based polymers and speciality ingredients, we aim to accelerate the development of new products that deliver enhanced value to customers and positively impact global markets,” said John Patrin, managing director of Lubrizol InnoVentures.
