Lucknow-based food technology startup Arboreal Bioinnovations has raised ₹230 crore (around $24 million) in a Series A funding round. The funding is one of the biggest Series A investments made in India’s specialty food ingredients industry. The company will use the fresh funds to increase production, improve research, and bring its next-generation food and nutraceutical ingredients to the market faster.
The funding round was co-led by EAAA Alternatives, the alternative investment platform of Edelweiss, and agrifood-focused venture capital firm Omnivore. Existing investor Rainmatter, backed by the founders of Zerodha, also joined the round. Earlier, Arboreal had raised around $3.5 million from institutional investors and angel investors.
Founded in 2018 by Swati Pandey and Manish Chauhan, Arboreal Bioinnovations develops clean-label and natural ingredients for food, beverage, and nutraceutical companies in India and other countries.
Funding to Increase Production and Speed Up Growth
Arboreal Bioinnovations plans to use the new funding to move from product development to large-scale production. The company wants to expand its manufacturing facilities so it can supply more products and compete with global ingredient companies.
A part of the investment will also be used to strengthen its research and development (R&D) team. The startup plans to hire more skilled professionals and speed up the launch of its next-generation functional ingredients, especially its yeast-based proteins.
The company is also hiring new employees to support product development as it prepares to introduce more protein-based nutraceutical products.
This latest funding comes after the company previously raised around $3.5 million from private institutional funds and angel investors. The new investment gives Arboreal the financial support it needs for its next stage of growth.
Company Focuses on Healthier Food Ingredients
Arboreal Bioinnovations creates natural and clean-label ingredients that help food companies make healthier products. It combines ingredient research, food science, and manufacturing technology to develop ingredients that meet the needs of both businesses and consumers.
Its product range includes natural zero-calorie sweeteners such as stevia extracts and polyols. These ingredients are designed to provide the sweetness, taste, and texture of sugar without adding extra calories. The company also develops yeast-based proteins, collagen ingredients, cocoa-based ingredients, and functional fibres for use in food, beverages, and nutraceutical products.
The startup follows a “contextual innovation” approach. Instead of offering the same solution to every company, it develops ingredients based on the specific needs of different brands. This has helped Arboreal work with many food manufacturers looking for healthier and clean-label products.
Its consumer-facing and associated brands include Arboreal, Magicleaf, and EasyBuy.
Strong Growth Boosts Investor Confidence
The funding comes as Arboreal Bioinnovations continues to grow its business. The company says it has supported more than 300 product launches in the last 18 months for over 1,100 consumer brands and nutraceutical manufacturers. It also says its products now reach nearly 10 lakh consumers around the world.
The company’s financial performance has also improved. According to Arboreal, its revenue more than tripled in FY25, taking its annual revenue to an estimated ₹50–100 crore. This is a strong improvement compared to FY24, when the company reported ₹26.9 crore in revenue and a ₹12.3 crore net loss.
Chief Executive Officer Swati Pandey said the funding will help the company build more science-based and clean-label ingredient solutions in India for global markets. She added that the company wants to solve nutrition-related challenges through innovation.
Chief Operating Officer Manish Chauhan said the investment is an important milestone for the company. According to him, it will help Arboreal move beyond developing new technologies and bring ingredient-based innovation to the food industry on a much larger scale.
The investors also shared their confidence in the startup’s future. EAAA Alternatives said it sees strong long-term potential in Arboreal’s yeast protein business. Omnivore said the company is helping meet the growing demand for clean-label and healthy food ingredients without affecting taste or business profits. Rainmatter said the investment will help Arboreal build a strong research team and create a world-class food technology company from India.
As more people choose healthier food and nutrition products, this investment is expected to help Arboreal Bioinnovations expand its business in India and strengthen its presence in international markets.