BacAlt Biosciences raises ₹18 Crore in funding round led by Avaana Capital

Speciality biotech startup BacAlt Biosciences has raised ₹18 crore ($2 million) in a funding round led by Avaana Capital, with participation from Lubrizol InnoVentures, the co-innovation platform of global speciality chemicals leader Lubrizol.

BacAlt, which develops bio-based polymers and speciality ingredients as sustainable, non-microplastic alternatives to conventional synthetics, aims to disrupt the global market with circular, low-carbon production processes. The company’s technology leverages waste valorisation, circular feedstocks, and non-sterile fermentation to deliver high-performance, cost-efficient materials for home care, personal care, agrochemicals, nutraceuticals, and pharmaceuticals.

“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. She highlighted that the startup is focused on reducing import dependence and building export-ready bio-manufacturing capabilities.

According to Shruti Srivastava, Investment Director at Avaana Capital, BacAlt’s proprietary fermentation platforms and use of agri-waste help meet the performance and cost thresholds required for scaling in FMCG and other sectors, placing the firm at the forefront of sustainable materials innovation.

John Patrin, Managing Director of Lubrizol InnoVentures, said the collaboration reflects Lubrizol’s commitment to advancing biotechnology solutions, adding that BacAlt’s innovations will accelerate the development of new products for global markets.

The funds raised will be channelled into scaling R&D, building pilot facilities, expanding the team, and developing go-to-market strategies.

Founded by a team of biotechnologists, BacAlt Biosciences is positioning itself as a performance-first, circular bio-based alternative provider, aiming to outpace synthetics and shape the future of global formulations.