Biotech Startup StrainX Bags $13 Mn To Manufacture Alternative Proteins

Emerging out of stealth mode, biotech startup StrainX Bioworks has raised $13 Mn (around ₹124 Cr) in a funding round led by Prime Venture Partners and Leo Capital. The round also saw participation from Good Startup, Sparrow Capital, Sun Icon Ventures, Dholakia Ventures, and WindT Angels (founded by IIT Delhi alumni). 

This marked the first investment by Singapore-based Good Startup, which exclusively backs biotech firms, in India, StrainX cofounder Akshay Mittal told Inc42. 

StrainX plans to deploy the capital to expand capacity at its Bhopal bio-manufacturing fermentation facility and commence commercial-scale production. A part of the funds will also be used to bolster its Bengaluru R&D lab by hiring more scientists and ramping up its tech capabilities.

Founded in 2023 by IIT Delhi alumni Mittal and Alok Malaviya, StrainX manufactures alternative proteins. The startup aims to produce these at scale in a lab using synthetic biology, with use cases across food, nutrition, materials, and cosmetics. 

Alternative proteins, in simple terms, are proteins derived from non-animal sources. 

Engineering Microbes For Alternative Proteins

The Bhopal-based startup works across synthetic biology and precision fermentation. While the former involves engineering microbes such as bacteria, yeast, and fungal cells to produce desired outputs, the latter focuses on scaling the process in controlled environments. 

StrainX claims to have obtained approval in the US to commercialise the product and is aiming to get Indian approvals ‘soon’. Its Bhopal facility has a 10,000 litre capacity currently, which the startup said can be scaled to 10X over the next two years.

According to Mittal, StrainX’s full-stack model, anchored by India-based manufacturing, gives it a pricing edge. Depending on purity, packaging, size, and end application, products are priced anywhere from a few hundred to a few thousand dollars per kilogram.

“Bio-manufacturing is going to define the next decade of manufacturing. The last hundred years were defined by chemical manufacturing. Technology has now advanced to the point where fermentation engineering and bio-manufacturing can produce things cheaper and at better quality and price points than older methods,” Mittal told Inc42.

However, the cofounder added that high-quality precision fermentation manufacturing for non-pharma applications remains limited in India, with existing infrastructure often unsuited to the downstream requirements of food proteins and ingredients. This, Mittal said, creates a sizeable market opportunity for StrainX. 

The startup claims to currently employ around 100 employees. Of this, roughly one-third are at the Bengaluru R&D lab, while the remaining two-thirds are based in Bhopal, where manufacturing, engineering and operations teams sit.

Going forward, the biotech startup plans to double its headcount to 200 by the end of the ongoing financial year. StrainX also plans to further expand into new science verticals.

The funding comes amid a growing regulatory push for the biotech sector. In her Budget speech this year, finance minister Nirmala Sitharaman announced a new ‘Biopharma SHAKTI’ scheme with an outlay of ₹10,000 Cr. Besides a single-window clearance portal for biological research, the Centre also offers funding and incubation support to biotech startups under the BIRAC SEED scheme. 

Other tailwinds for the sector include an abundance of scientific talent and rapidly growing demand for local biotech solutions. As a result, investors are lining up for the sector. 

Earlier this month, Cellogen Therapeutics bagged about $2 Mn in funding from Kotak Alternate Asset Managers. In March, probiotics manufacturer ELMED Life Sciences also secured $2.7 Mn in a Series A round from state-backed AgriSURE Fund.

Home to more than 11,000 biotech startups, the Indian bioeconomy is projected to become a $300 Bn market opportunity by 2030.

The post Biotech Startup StrainX Bags $13 Mn To Manufacture Alternative Proteins appeared first on Inc42 Media.