Singapore-headquartered biotechnology startup Chitose Bio Evolution has announced raising 7.3 billion yen ($49 million) from a group of Japanese investors.
Investors in the funding round included major Japanese banks Sumitomo Mitsui Banking Corporation and Mizuho Bank, cosmetics giant Shiseido, venture capital funds Jafco Asia, and a host of other investors.
Chitose develops inbreeding and cultivating technology for a wide range of organisms. It conducts R&D and business development in various fields, such as microalgae, cells, fermentation, agriculture, and intestinal bacteria.
The fresh funds will be used to develop various bio-products using microorganisms and cells and expand Chitose’s production capacity. It will also use the funds to prepare for an initial public offering (IPO) on Nasdaq planned for 2027.
Chitose is preparing to expand its 5-hectare facility, CHITOSE Carbon Capture Central (C4), which opened in April 2023, into a 100-hectare production facility. The long-term goal is to scale operations up to 2,000 hectares by 2030 and eventually reach 10 million hectares by 2050.
The startup, led by CEO Tomohiro Fujita, is spearheading efforts in the global bioeconomy, particularly through its MATSURI initiative, which focuses on developing a sustainable industry based on microalgae biomass production.
“With the funding secured this time, we will further accelerate the practical application of microalgae production and the implementation of circular solutions, further expanding our efforts to realize a sustainable society,” Fujita said.
In July last year, the startup raised about $6.2 million from Japan’s SMBC.
SMBC earlier said government support in Japan for bioeconomy has been strong following the introduction of “Japan’s Bioeconomy Strategy” in 2019, which aims to make it the world’s most advanced bioeconomy society by 2030.
SMBC is one of Japan’s leading banks with an extensive network domestically and a growing international presence. It has 453 branches/offices in Japan (excluding sub-branches and agencies), 19 overseas branches, and over 28,000 employees.
In January, another Singapore biotech startup secured funding to support its growth and expansion into key global markets. Mirxes received $40 million in structured financing from CBC Group’s R-Bridge Healthcare Fund.
