Israeli biotech Phytolon has announced the close of its $23.6m Series B financing to commercialise its natural food colours in the US market.
The company said in a statement that the round reflected "growing market demand for high-performing, economic and sustainable natural alternatives to synthetic dyes."
The financing comes after the FDA's approval of Beetroot Red, the company's first natural colourant in its portfolio — though it stressed that an effective date for the ruling is yet to be set.
It added that Beetroot Red complies with the performance and clean-label standards expected by CPGs and consumers in modern food markets.
The colourant is produced via fermentation of baker's yeast, generating a cost-efficient product with robust supply and superior environmental sustainability credentials.
Halim Jubran, Phytolon's co-founder and CEO, said: "This new funding will be allocated to support sales and supply to CPGs and to distribution partners in the US and beyond."
I am excited to see our portfolio of strategic investors increase, enabling us to grow our business and establish our footprint in the market.
James Cali, General Partner at NGN, added: "Phytolon is at the nexus of two mega-trends — consumer and regulatory demand to remove artificial dyes and advances in fermentation to offer natural ingredients with better functionality, cost and sustainability."
With a strong network of strategic partners and recent FDA approval, Phytolon is well-positioned to capitalise on the transition toward natural dyes across food and supplement products.