Biotech startup BacAlt Biosciences has secured Rs 18 crore in a funding round led by Avaana Capital, an early-stage investment firm, valuing the company at $8 million.
The round also included participation from Lubrizol InnoVentures, the innovation arm of global specialty chemicals giant Lubrizol.
The fresh capital will primarily be directed towards scaling R&D activities. In addition, the company plans to set up pilot production units and strengthen its team. Furthermore, it aims to formulate go-to-market strategies to support 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 said.
Founded in 2023 by Kutmutia and Pranav Nair, BacAlt Biosciences focuses on creating sustainable substitutes for traditional specialty ingredients. It does so by producing biopolymers from agro-industrial waste using bio-manufacturing processes.
“We will commercially launch it in June next year, which is why we have raised this fund to set up a pre-pilot facility where our launch will truly take shape,” she said, noting that bio-manufacturing will first start in Bengaluru.
The company develops solutions for home care, personal care, agrochemicals, nutraceuticals, and pharmaceuticals, while also aiming to substitute petrochemical and synthetic inputs with sustainable, high-performance, and cost-effective ingredients, it said. Moreover, its biopolymers have diverse applications, spanning skincare, wound care, haircare, agriculture, and beyond.
“The biopolymers we are focusing on are bacterial cellulose and polyglutamic acid. These structures can only be produced by bacteria and cannot be replicated chemically. These products were expensive and not blended, 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 significant venture capital interest, as evidenced by 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 specialty 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.
