Phytolon Raises $23.6 million in Series B Round

The funding reflects growing demand for natural, affordable, high-performing, and sustainable alternatives to synthetic food dyes.

The funding round was led by an undisclosed strategic investor. Existing investors in Phytolon include NextGen Nutrition Investment Partners (NGN), Millennium Foodtech, Colorcon, and Yossi Ackerman.

The investment was completed in three stages, with most of the funding raised during the final closing earlier this month.

The funding comes after the FDA approved Beetroot Red, the first natural food color developed by Phytolon, although the official implementation date has not yet been announced.

Beetroot Red meets modern food industry standards for performance and clean-label ingredients that both food companies and consumers are looking for. The color is produced through the fermentation of baker’s yeast, making it a cost-effective, sustainable, and reliable alternative to synthetic food dyes.

Halim Jubran, Phytolon's Co-Founder and CEO, commented on the transaction: "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, also offered his thoughts on the transaction: "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."

Founded in 2018, Phytolon is a biotech company that develops natural food colors using its own precision fermentation technology. The company aims to change the way natural food colors are produced by offering high-quality, sustainable, and affordable solutions for the global food and beverage industry.

Phytolon’s products are based on two main pigments — yellow and purple — which can be used to create a wide range of colors including yellow, orange, red, pink, and purple.

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