Arboreal Bioinnovations has raised Rs 230 crore in a Series A funding round to expand its speciality food and nutraceutical ingredients business. 

The round was co-led by EAAA, the alternatives arm of Edelweiss, and agrifood investor Omnivore, with existing investor Rainmatter by Zerodha also participating.

The fresh capital will be used to increase Arboreal’s manufacturing capacity, strengthen research and development, and speed up the commercial launch of new functional ingredients. The company develops ingredients used by food, beverage and nutraceutical brands, with a focus on products that support areas such as lower-calorie formulations and healthier food choices.

Arboreal has built its business around speciality ingredients and operates a vertically integrated manufacturing model. Its portfolio includes stevia-based solutions and other functional ingredients, which are increasingly being adopted by brands looking to respond to changing consumer preferences around sugar reduction and nutrition.

The funding also highlights the growing interest of investors in India’s food technology and agrifood sectors. Omnivore has been an existing backer of Arboreal, while EAAA’s participation comes as part of its second Discovery Fund, which has raised more than Rs 1,200 crore and is targeting investments in businesses with strong growth potential.

For Arboreal, the Series A round provides the financial backing needed to scale production and move more products into commercial markets. The company will also be able to invest further in product development as demand rises for innovative food and nutraceutical ingredients.

The Rs 230 crore fundraise marks an important growth stage for Arboreal Bioinnovations and strengthens its ability to build a larger presence in India’s rapidly expanding specialty ingredients market.

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