Arboreal Bioinnovations raises INR ₹230 crore Series A

Arboreal Bioinnovations has raised INR ₹230 crore in a Series A round co-led by Omnivore and EAAA Alternatives.

Rainmatter also participated in the funding for the Bengaluru-based ingredients company, in what Arboreal described as one of the largest Series A raises in India's specialty food ingredients sector.

The company will use the capital to expand manufacturing capacity, deepen research and development, and accelerate commercialisation of its ingredient portfolio.

Arboreal develops specialty food and nutraceutical ingredients, with a model centred on products designed for the nutritional, sensory, and commercial needs of Indian consumers and brands. Its work spans ingredient engineering, process research and development, formulation science, and manufacturing.

The company has developed and commercialised ingredients across next-generation proteins, cocoa-based ingredients, natural zero-calorie sweeteners, and functional fibres, with several additional ingredient platforms in development.

According to Arboreal, its growth has more than doubled year on year. Over the past 18 months, its ingredients have supported more than 300 product launches across more than 1,100 consumer brands and nutraceutical manufacturers.

Funding plans

The investment comes as food and nutraceutical companies seek ingredients that meet demand for lower-sugar, higher-protein, and health-focused products while matching local tastes and price points. That has created an opening for domestic suppliers that can develop formulations for Indian brands instead of relying on imported solutions.

Arboreal's pitch to investors is built around that market gap. Its "contextual innovation" approach is designed to tailor ingredient systems to specific local requirements rather than adapt products developed for overseas markets.

Co-Founder and Chief Executive Officer Swati Pandey said the funding validates the company's direction.

"This fundraise is a strong validation of the direction we are taking as a company. It gives us the fuel to accelerate our mission of building clean, science-led solutions that address some of the world's most pressing nutritional and food challenges, with innovation originating in India and reaching consumers globally," said Pandey.

Co-Founder Manish Chauhan linked the round to Arboreal's longer-term technology and manufacturing plans.

"This fundraise marks an important milestone in Arboreal's journey from building IP led ingredient technologies to enabling big shifts across categories through ingredient first innovation. The confidence shown by EAAA, Omnivore and Rainmatter validates both the strength of our platform and the opportunity ahead of us. It gives us the ability to invest more deeply in science, manufacturing, talent and long-term innovation, while building a platform capable of creating differentiated ingredients for some of the world's most important food and nutraceutical brands. We are excited to build Arboreal into a globally respected ingredient technology company from India," said Chauhan.

Investor view

For EAAA Alternatives, the deal marks the first investment from its Discovery Fund II. The firm highlighted Arboreal's work on yeast protein products and nutraceutical ingredients.

"The investment in Arboreal reflects the core philosophy of our fund's strategy - backing businesses with the potential to emerge as category leaders. As the first investment from our Discovery Fund II, we are particularly excited at the long term growth prospects of Arboreal's next-generation yeast protein products. We look forward to working with Swati and Manish as they continue to build category leadership in R&D-led nutraceutical ingredients," said Agarwal.

Omnivore framed the investment around a broader shift in consumer food products toward cleaner labels and functional formulations.

"The shift toward clean-label and functional foods requires engineered ingredients that deliver clear health benefits without sacrificing taste or margins. Arboreal fills a critical market gap with locally developed formulations. From sweetener alternatives to novel yeast proteins and collagens, Arboreal's R&D stack positions them to power the next wave of health and wellness brands," said Shah.

Rainmatter said its backing reflects a desire to support research-led businesses in India, especially in sectors where domestic capital has often been limited.

"We all lament that India does not allocate capital for enough R&D. Aside from all the things everyone else shared in their reasoning for the investment, we truly wanted to back Swati and Manish in building a world class R&D team working on food ingredients from India. We believe that they are the right team, with exceptional grit to chase down this problem. Rainmatter exists to back these audacious bets, and this is one of them," said Pai.