Arboreal Closes $24M (₹230 Crore) Round to Expand Functional Ingredient Manufacturing in India

Arboreal Bioinnovations, a Lucknow-based developer of specialty food and nutraceutical ingredients, has closed a ₹230 crore (around $24 million) Series A round co-led by Omnivore and EAAA, the alternatives arm of Edelweiss. Existing investor Rainmatter by Zerodha also participated in the funding. The company plans to use the capital to expand manufacturing capacity, enhance research and development efforts, and introduce new functional ingredients, positioning itself as a leader in India's specialty food ingredients sector.

Founded in 2018, Arboreal focuses on developing ingredients such as yeast and plant proteins, zero-calorie sweeteners, cocoa-based ingredients, and functional fibers. With a technology platform covering ingredient engineering, process R&D, formulation science, and manufacturing, Arboreal supplies over 1,100 business customers in India and has seen its ingredients featured in more than 300 product launches in the past 18 months. The investment in Arboreal is driven by the growing demand for clean-label and functional foods, with a focus on locally developed formulations that deliver health benefits without compromising taste or margins, making the company well-positioned to drive the next wave of health and wellness brands in the market.