BacAlt Raises INR 18 Cr To Make Biopolymers

SUMMARY

The funding round was led by Avaana Capital and also saw participation Lubrizol InnoVentures

The biotech startup plans to use the capital to scale up its research and development (R&D) process, build production facilities, and expand its team

BacAlt produces biopolymers and bio-based actives that can be used in making home and personal care products and more

Bengaluru-based BacAlt Biosciences has raised INR 18 Cr (around $2 Mn) in its pre-seed funding round led by Avaana Capital, with participation from specialty chemical company Lubrizol’s venture platform Lubrizol InnoVentures.

The biotech startup plans to use the capital to scale up its research and development (R&D) process, build production facilities, and expand its team.

“The funds will primarily be used to set up our pre-pilot facility, which will allow us to validate scalability. In addition, it will support our team in advancing our patents, engaging with more customers, gathering inputs on formulations, and strengthening our product pipeline,” cofounder and CEO Shruti Kutmutia told Inc42.

Founded in 2024 by Kutmutia and Pranav Nair, BacAlt produces biopolymers and bio-based actives from post-harvest waste using fermentation processes. The startup aims to reduce reliance on petrochemicals and harmful microplastics, and claims that its end product is safer, cost-effective, and eco-friendly.

BacAlt’s polymers and bioactives are used in making home care, personal care, agrochemicals, nutraceuticals, and pharma products.

“The demand for high-performance, cost-competitive ingredients is real, and we are building for scale, taking India from an import-dependent market to an export-ready bio-manufacturing hub,” Kutmutia said.

The fundraise comes at a time when investors are bullish on biotech startups on the back of the steps taken by the Centre to promote the sector. Last year, the Union cabinet approved the Vigyan Dhara scheme and the BioE3 (Biotechnology for Economy, Environment, and Employment) policy to make India a biomanufacturing hub.

Consequently, a number of biotech startups like GreenGrahi, which produces insect proteins and functional oils for aquaculture, poultry, and pets, and Loopworm, which manufactures high-protein animal feeds from silkworms, have raised capital in the past few months.

In July this year, Minister of State for Science and Technology Jitendra Singh said that India is home to about 11,000 biotech businesses. He added that the Centre is committed towards building a $300 Bn bioeconomy by 2030.