California-headquartered synthetic milk startup Perfect Day announced the expansion of its Series C round to $300 million as it garnered additional capital, led by Canada Pension Plan Investment Board (CPP Investments).
This follows an initial $140 million Series C round shared late last year, which was met with additional inbound interest, the company said in a statement. The round was led by its existing backers – Singapore state-owned investment firm Temasek Holdings and Li Ka-shing’s Horizon Ventures.
Temasek and Horizon Ventures had earlier injected $34.8 million in Perfect Day’s Series B round in February 2019. Prior to that, in February 2018, Temasek had exclusively poured in $24.7 million in its Series A round.
With the latest investment, Perfect Day plans to build an efficient and approachable supply chain by direct connections with local producers and processors, the startup said in a statement.
Perfect Day, which was co-founded by Ryan Pandya and Perumal Gandhi in 2014, uses fermentation in microflora instead of depending on cows to produce flora-made dairy protein. Its lactose-free, vegan-friendly and eco-friendly dairy protein are widely used to make foods such as ice cream, milk, cheese and butter. The company claims to have attempted to offer alternative and sustainable dairy product supply amid the COVID-19 crisis.
“Sustainable technologies like Perfect Day are poised to capture structural shifts in industrial practices, physical resources and consumer preferences for environmentally conscious options, which are well-suited to our long-term investing approach,” said Leon Pedersen, managing director, head of thematic investing at CPP Investments.
Meanwhile, Perumal Gandhi, co-founder at Perfect Day, said: “We continue to believe the next generation of protein will be driven by production speed, price, and taste, and we’ll have several exciting updates to share in the months ahead as our commercial partners start to build momentum.”
According to a report by Caixin Global, Perfect Day along with other leading synthetic food-makers such as Beyond Meat and Impossible Foods are looking to foray into the Chinese market, which is increasingly witnessing demand in this sector.