Speciality biotech startup BacAlt Biosciences raises Rs 18 crore in funding led by Avaana Capital

BacAlt Biosciences, a first-of-its-kind speciality biotech startup building high-performance, non-microplastic and sustainable alternatives to conventional ingredients, has raised Rs 18 crpre in funding led by Avaana Capital, a venture capital fund focused on backing deeptech innovation, with participation from Lubrizol InnoVentures, the co-innovation ventures platform of global speciality chemicals leader Lubrizol.

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Founded by a team of biotechnologists, BacAlt develops bio-based polymers and specialty ingredients using lean, energy-efficient, and high-throughput fermentation that improves product performance in diverse applications while preventing microplastic pollution. 

By leveraging waste valorisation, circular feedstocks, and non-sterile fermentation, BacAlt’s low-carbon production process sets new performance and cost standards for sustainable materials, providing formulators in sectors like home care, personal care, agrochemicals, nutraceuticals, and pharmaceuticals with advanced textures, functionalities, and stability - at mass-market viable cost points without reliance on synthetics - improving both human and planetary health.

“BacAlt’s vision is to power India’s emergence as a global hub for circular, bio-based speciality ingredients,” said Shruti Kutmutia, Co-Founder of BacAlt. “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.”

“By combining proprietary fermentation platforms with circular use of agricultural waste, BacAlt is delivering ingredients that finally meet the performance and cost thresholds required for scale in FMCG,” said Shruti Srivastava, Investment Director at Avaana Capital. “These breakthroughs position the company at the forefront of sustainable materials for mainstream markets.”

The startup plans to use the raised funds to scale its R&D processes, build pilot production facilities, strengthen hiring and develop go-to-market strategies for geographic expansion.