A Breakthrough for Biotech Innovation
Bengaluru-based biotech startup BacAlt Biosciences has clinched a remarkable INR 18 crore (approximately $2 million) in its pre-seed funding round, announced on September 11, 2025. Spearheaded by Avaana Capital and bolstered by Lubrizol InnoVentures, the venture arm of global specialty chemicals leader Lubrizol, this funding marks a pivotal step toward revolutionizing sustainable biopolymers in India. The capital infusion positions BacAlt to lead the charge in eco-friendly bio-manufacturing, addressing the pressing need for sustainable alternatives to petrochemicals.
Strategic Use of Funds
Scaling R&D and Infrastructure
BacAlt plans to deploy the funds to supercharge its research and development (R&D) efforts, establish a pre-pilot production facility, and expand its team. According to co-founder and CEO Shruti Kutmutia, the pre-pilot facility will be critical for validating scalability, enabling BacAlt to refine its innovative processes. The investment will also support patent advancements, customer engagement, and the development of a robust product pipeline tailored to market needs.
Driving Product Innovation
The startup aims to enhance its proprietary fermentation platforms, which transform agricultural waste into high-performance biopolymers and bio-based actives. These sustainable materials are designed for applications in home care, personal care, agrochemicals, nutraceuticals, and pharmaceuticals, offering a safer and greener alternative to conventional ingredients.
BacAlt’s Vision for Sustainability
Transforming Agricultural Waste
Founded in 2024 by Shruti Kutmutia and Pranav Nair, BacAlt Biosciences is at the forefront of sustainable innovation, leveraging post-harvest crop residues to produce biopolymers. By utilizing lean, energy-efficient fermentation processes, BacAlt creates eco-friendly ingredients that eliminate reliance on harmful microplastics and petrochemicals. “Our goal is to deliver cost-competitive, high-performance solutions that meet global standards while addressing India’s environmental challenges,” Kutmutia stated.
Broad Industry Applications
BacAlt’s biopolymers and bioactives cater to diverse sectors, including personal care (cosmetics and skincare), home care (cleaning products), and agrochemicals (sustainable farming solutions). The startup’s focus on scalability and cost-effectiveness positions it to disrupt these industries by offering environmentally responsible alternatives that maintain or exceed performance benchmarks.
A Booming Biotech Ecosystem
Support from Government Initiatives
The funding arrives amid growing investor enthusiasm for India’s biotech sector, fueled by supportive government policies like the Vigyan Dhara scheme and the BioE3 policy, which aim to establish India as a global biomanufacturing hub by 2030. With approximately 11,000 biotech businesses currently operating in India, as highlighted by Minister of State for Science and Technology Jitendra Singh, the sector is poised for exponential growth, targeting a $300 billion bioeconomy.
Rising Tide of Biotech Investments
BacAlt’s raise is part of a broader trend, with other biotech startups like GreenGrahi and Loopworm also securing significant funding in recent months. GreenGrahi focuses on insect-based proteins for animal feed, while Loopworm produces high-protein feeds from silkworms, reflecting the diversity and potential within India’s biotech landscape.
Leadership and Investor Confidence
Shruti Srivastava, Investment Director at Avaana Capital, praised BacAlt’s innovative approach, stating, “By combining proprietary fermentation with circular use of agricultural waste, BacAlt delivers sustainable ingredients that meet the performance and cost thresholds required for mainstream adoption.” Lubrizol InnoVentures’ participation further underscores the startup’s potential to drive global impact, with John Patrin, Managing Director, noting, “BacAlt’s bio-based solutions align with our mission to accelerate sustainable innovation in specialty chemicals.”
Charting a Global Future
With its headquarters in Bengaluru and a registered office at FF14, IBAB Electronics City Phase 1, BacAlt is well-positioned to transform India from an import-dependent market into an export-ready bio-manufacturing powerhouse. The startup’s focus on scalability, sustainability, and cost-competitiveness sets the stage for it to capture significant market share in the global biopolymer industry, projected to grow to $27.9 billion by 2030.
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Last Updated on Thursday, September 11, 2025 4:56 pm by The Entrepreneur India Team
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