Arboreal Bioinnovations, a Lucknow-based food technology company, has secured ₹230 crore (about $24 million) in Series A funding to scale manufacturing, accelerate R&D, and fast-track the commercial rollout of its next-generation food and nutraceutical ingredients, marking one of the largest early-stage raises in India’s specialty food ingredients space.
Investment details and strategic priorities
The 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 Zerodha founders, also participated. Prior to this, Arboreal had raised approximately $3.5 million from institutional and angel investors.
The company plans to transition from product development to large-scale production by expanding manufacturing capacity and strengthening its supply capabilities to compete with global ingredient suppliers. A significant share of the capital will be directed towards bolstering research and development, hiring specialist talent, and accelerating launches of functional ingredients, with a particular focus on yeast-derived proteins.
Product portfolio and market focus
Founded in 2018 by Swati Pandey and Manish Chauhan, Arboreal develops clean-label, natural ingredients for food, beverage, and nutraceutical manufacturers in India and overseas. Its portfolio includes natural zero-calorie sweeteners such as stevia extracts and polyols, designed to deliver sugar-like taste and texture without added calories. The company also works on yeast-based proteins, collagen ingredients, cocoa-based solutions, and functional fibres for use across packaged foods, beverages, and nutrition products.
Arboreal follows a “contextual innovation” approach—co-developing ingredient solutions tailored to specific brand requirements rather than offering standard formulations. This model is aimed at enabling product reformulation and cleaner labels without compromising taste, texture, or unit economics. The company’s consumer-facing and associated brands include Arboreal, Magicleaf, and EasyBuy.
Growth metrics and financial performance
According to the company, it has supported over 300 product launches in the past 18 months for more than 1,100 consumer brands and nutraceutical manufacturers. Arboreal estimates that its ingredients now reach nearly 10 lakh consumers globally.
On the financial front, Arboreal reports that revenue more than tripled in FY25, taking annual revenue to an estimated ₹50–100 crore. In FY24, the company posted ₹26.9 crore in revenue with a net loss of ₹12.3 crore. The fresh capital is expected to underpin the next phase of growth and operating scale-up.
Management and investor commentary
Chief Executive Officer Swati Pandey said the investment will advance the company’s mission to build science-led, clean-label ingredient solutions in India for global markets, addressing nutrition and reformulation challenges through innovation.
Chief Operating Officer Manish Chauhan termed the raise a key milestone that will help the company move from technology development to large-scale, market-ready ingredient innovation for the broader food industry.
Investors expressed confidence in Arboreal’s roadmap. EAAA Alternatives cited strong long-term potential in the yeast protein vertical. Omnivore highlighted the company’s role in meeting demand for clean-label, healthier ingredients without sacrificing taste or profitability. Rainmatter noted that the funding will help build a stronger research team and scale a world-class food technology business from India.
Sector backdrop
India’s packaged food and nutraceutical sectors are witnessing rising demand for low- and no-sugar products, functional proteins, and clean-label formulations, driven by health-conscious consumers and evolving regulatory standards. Ingredient suppliers with strong R&D, application expertise, and scalable manufacturing are increasingly positioned to partner with brands on reformulation and product development—an area Arboreal aims to expand with the latest funding.
