China biosynthesis start-up Bluepha raises $58m
Bluepha, a Chinese start-up focused on bio-based chemicals, has raised CNY 400m (USD 58m) in a fourth tranche of Series B funding.
The round was led by Beijing-based Zhong Ping Capital with participation from state-owned Jiangsu Huanghai Financial Holding Group. The company has also secured a CNY 500m credit line from SPD Silicon Valley Bank, China Merchants Bank, and Industrial & Commercial Bank of China (ICBC).
Bluepha announced a three-tranche Series B of CNY 1.5bn last year. The first tranche of CNY 200m was led by GL Ventures and Lightspeed China Partners in February 2021. Six months later, Country Garden Venture Capital led a second tranche of CNY 430m. The third tranche of CNY 800m was led by Genesis Capital and China State-Owned Enterprise Mixed Ownership Reform Fund.
Founded in 2016, Bluepha combines genetic engineering, fermentation engineering, material science, and data science to industrialise bio-based chemicals and materials. Its signature brand of polyhydroxyalkanoate (PHA) is a bio-degradable polyester mainly used to produce bioplastics, a sustainable single-use alternative to petroleum-derived plastics.
The company has an in-house developed PHA research platform, which it claims can shorten the product development cycle by 70%. There is also an IT team of similar size to the biotechnology team, ensuring that everything from research through manufacturing is digitised and deficiencies can be addressed quickly.
The transition from laboratory research to industrial mass manufacturing - which Bluepha is undertaking - is considered the “valley of death” for biosynthesis start-ups. They are moving from a space in which environmental factors such as humidity, temperature, and air purity can be easily controlled to one in which they cannot. For example, a slight change in air quality in a factory may result in manufacturing failures.
Bluepha's phase-one manufacturing plant in Jiangsu province, which has a capacity of 5,000 tonnes per year, has completed trial runs and is entering the commercialisation stage, according to a statement. Bluepha announced last year that it would build a new facility with an annual production capacity of 25,000 tons.
FreesFund was Bluepha's first institutional investor, committing CNY 5m in angel funding in 2017. A pre-Series A led by Leaguer Venture Capital came in 2018 and then a CNY 40m Series A - backed by several government-related investors - in 2019. Shenzhen Green Pine Capital Partners made a solo investment in 2020.
Private equity investment in China cleantech and renewables is at a record high. At the same time, the likes of Sequoia Capital China and CICC Capital have launched carbon neutrality funds, while Lightspeed China Partners has made carbon neutrality the core investment strategy for its latest vehicle.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.