In a transformative leap for India’s biotech landscape, Bengaluru-based speciality biotech startup BacAlt Biosciences has raised Rs 18 crore (approximately $2 million) in a pre-seed funding round led by Avaana Capital, a venture capital firm renowned for championing deep-tech innovation. The funding round, announced on September 11, 2025, also saw participation from Lubrizol InnoVentures, the innovation arm of global speciality chemicals leader Lubrizol, valuing BacAlt at $8 million. This landmark investment positions BacAlt as a trailblazer in the fight against microplastic pollution, offering sustainable, high-performance biopolymers to revolutionize industries ranging from personal care to pharmaceuticals. With plans to scale research, build pilot production facilities, and expand globally, BacAlt is poised to transform India into a hub for circular, bio-based manufacturing.
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Pioneering Sustainable Solutions
Founded in 2023 by biotechnologists Shruti Kutmutia and Pranav Nair, BacAlt Biosciences is tackling one of the most pressing environmental challenges of our time: microplastic pollution. The startup develops bio-based polymers and speciality ingredients using agro-industrial waste, such as post-harvest crop residues, through a proprietary, energy-efficient fermentation process. Unlike traditional petrochemical-based ingredients, which contribute to 87% of top-selling consumer products containing microplastics, BacAlt’s biopolymers—such as bacterial cellulose and poly gamma glutamic acid—offer eco-friendly alternatives that match or surpass the performance of synthetic counterparts. These materials find applications in diverse sectors, including skincare, haircare, wound treatment, home care, agrochemicals, nutraceuticals, and pharmaceuticals.
BacAlt’s innovative approach leverages waste valorisation, circular feedstocks, and non-sterile fermentation to create a low-carbon production process that is both cost-competitive and scalable. “Just getting rid of packaging or making it recyclable isn’t enough,” said Shruti Kutmutia, co-founder and CEO of BacAlt, in an interview with The Economic Times. “We have to think about formulations. Our goal is to replace harmful microplastics with sustainable, high-performance ingredients that don’t compromise on quality or cost.” The company’s first commercial product, set to launch in June 2026, will be produced at a pre-pilot facility in Bengaluru, marking a significant step toward mass-market adoption.
Strategic Funding for Global Impact
The Rs 18 crore infusion will fuel BacAlt’s ambitious growth plans. The startup intends to allocate the funds across four key areas: scaling research and development (R&D), establishing pilot-scale production facilities, expanding its team of biotechnologists and industry experts, and developing go-to-market strategies for geographic expansion. By integrating microbiology, industrial bio-manufacturing, and scalable fermentation, BacAlt aims to deliver reliable, high-performance alternatives to synthetic ingredients, positioning India as an export-ready bio-manufacturing hub. “The demand for cost-competitive, sustainable ingredients is real,” said Kutmutia. “We’re building for scale, taking India from an import-dependent market to a global leader in bio-based solutions.”
Avaana Capital’s investment underscores the growing global interest in deep-tech solutions that combine performance with sustainability. Shruti Srivastava, investment director at Avaana, highlighted BacAlt’s potential: “By combining proprietary fermentation platforms with circular use of agricultural waste, BacAlt is delivering ingredients that meet the performance and cost thresholds required for scale in FMCG.” Lubrizol InnoVentures’ participation further validates BacAlt’s vision, with John Patrin, managing director of Lubrizol InnoVentures, noting, “With Lubrizol’s expertise and global network, we aim to accelerate the development of new products that deliver enhanced value to customers and positively impact global markets.”
Addressing a Global Challenge
Microplastic pollution has emerged as a critical environmental issue, with synthetic ingredients infiltrating everyday products and ecosystems. BacAlt’s biopolymers offer a sustainable alternative, providing advanced textures, stability, and functionality without harming human or planetary health. The startup’s production process is designed to be lean and energy-efficient, utilizing circular feedstocks to reduce carbon impact while maintaining mass-market viability. This approach not only addresses environmental concerns but also aligns with the growing consumer demand for eco-friendly products, particularly in India’s $50 billion personal care market and the $20 billion global nutraceutical sector.
BacAlt’s focus on agro-industrial waste valorisation taps into India’s abundant agricultural resources, transforming byproducts into high-value materials. This circular economy model not only reduces waste but also creates economic opportunities for farmers and rural communities. By establishing India as a hub for bio-based speciality ingredients, BacAlt aims to reduce the country’s reliance on imported petrochemicals, fostering self-sufficiency and global competitiveness. “We’re not just creating products; we’re building a sustainable ecosystem,” said co-founder Pranav Nair.
A Vision for the Future
BacAlt’s funding round comes at a pivotal moment for India’s biotech sector, which is projected to reach $150 billion by 2030, driven by advancements in deep-tech and sustainability. The startup’s ability to attract backing from industry leaders like Avaana Capital and Lubrizol InnoVentures signals strong confidence in its vision and execution. With plans to expand its workforce and establish pilot production facilities, BacAlt is laying the groundwork for rapid growth. The company’s first commercial launch in mid-2026 will target applications in personal care and home care, with plans to enter agrochemical and pharmaceutical markets by 2027.
The partnership with Lubrizol, a global leader in speciality chemicals, provides BacAlt with access to a vast network of industry expertise and distribution channels, enhancing its ability to scale internationally. Meanwhile, Avaana Capital’s focus on deep-tech innovation ensures that BacAlt has the strategic support needed to navigate the complex FMCG landscape. “BacAlt’s vision is to power India’s emergence as a global hub for circular, bio-based speciality ingredients,” said Kutmutia. “This funding is a stepping stone to making that vision a reality.”
A Catalyst for Change
As consumer awareness of sustainability grows, BacAlt Biosciences is well-positioned to lead the charge in replacing harmful microplastics with bio-based alternatives. Its innovative technology, strategic partnerships, and commitment to scalability make it a standout in India’s burgeoning biotech ecosystem. By addressing both environmental and performance needs, BacAlt is not only redefining speciality ingredients but also setting a new standard for sustainable manufacturing. With this funding, BacAlt is ready to ignite a revolution in how the world produces and consumes everyday products.
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