Phytolon announced it has closed a $23.6 million Series B financing round to support the commercialization of its fermentation-based natural food colors in the U.S. The company said the three-stage financing round was led by an undisclosed strategic investor as demand for sustainable and high-performing natural food color alternatives continues to rise globally.
The company explained that most of the funding was secured during the final stage of the round in April, with participation from existing investors including Millennium Foodtech, NextGen Nutrition Investment Partners, Colorcon Ventures, and investor Yossi Ackerman.
Phytolon noted that the financing comes shortly after the FDA approved Beetroot Red, the company’s first fermentation-produced natural color ingredient, although the effective date of the final ruling remains subject to FDA procedures. The company said Beetroot Red was developed to meet growing consumer and CPG demand for clean-label ingredients while also addressing cost, supply chain reliability, and sustainability concerns associated with natural dyes.
According to the company, Beetroot Red is produced by fermenting baker’s yeast and is designed to offer improved economics and greater supply consistency compared to conventional natural color production methods.
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“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.”
Halim Jubran, Co-Founder and CEO, Phytolon
“Phytolon is at the nexus 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 capitalize on the transition toward natural dyes across food and supplements products.”
James Cali, General Partner, NextGen Nutrition Investment Partners
