Biotech company BacAlt Biosciences has secured Rs 18 crore in a funding round spearheaded by the early-stage investment firm Avaana Capital. The current valuation of the company is $8 million.

The round included involvement from Lubrizol InnoVentures, the innovation division of global specialty chemicals provider Lubrizol.

The company will allocate the funds to enhance R&D activities, establish pilot production facilities, increase its workforce, and create go-to-market plans for geographic growth.

“Eliminating packaging or ensuring your packaging is recyclable or biodegradable isn't sufficient.” We need to consider formulations. Nearly 87 percent of the ten best-selling products include microplastics in their compositions. "That is what we're altering," Shruti Kutmutia states.

Established in 2023 by Kutmutia and Pranav Nair, the Bengaluru-based company creates sustainable substitutes for traditional specialty ingredients by generating biopolymers from agricultural waste through bio-manufacturing.

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The firm develops solutions for home care, personal care, agrochemicals, nutraceuticals, and pharmaceuticals to substitute petrochemical and synthetic inputs with sustainable, high-performing, and cost-effective ingredients, it stated. Biopolymers are utilized in various industries like skincare, wound healing, haircare, and agriculture, among others.

The biopolymers we are concentrating on include bacterial cellulose and polyglutamic acid. These formations can solely be generated by bacteria and cannot be synthesized chemically. These items were costly and unblended, rendering them unavailable to the general public.

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“Our products ensure affordability and accessibility while keeping cost neutrality aligned with what companies currently utilize,” adds Kutmutia.

This space has attracted venture capital interest, with several biotech startups, including Peelon, GreenGrahi, and Zerocircle, securing funding in recent months.

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Shruti Srivastava, investment director at Avaana Capital says, “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.”