Singapore’s Temasek has led a $24.7-million Series A round in California-headquartered Perfect Day, an animal-free dairy producer, marking yet another investment by the sovereign wealth fund in the emerging food tech space.
In a statement, Perfect Day said the fundraising was the largest Series A in the history of the sustainable food technology industry. Early backer Hong Kong-based venture capital firm Horizons Ventures also joined the funding round, along with Continental Grain (USA), Iconiq Capital (USA), Lion Ventures, Verus International, and others.
“The funding underscores that industry leaders and top global investors share the company’s vision for creating a future-proof source of nutrition and dairy delight for everyone in the world,” Perfect Day said.
Co-founder Perumal Gandhi added that the fresh funds will enable Perfect Day to grow its team, accelerate scale-up efforts, and ultimately commercialise with a wide variety of partners across the food and dairy sectors.
Founded in 2014, Perfect Day produces animal-free dairy proteins using a decades-old fermentation process. Its dairy proteins allow food manufacturers to formulate vegan/animal-free products with less reliance on starches, gums, and stabilizers.
A recent report released by the Farm Animal Investment Risk & Return (FAIRR) initiative showed that new vegetarian and vegan product launches increased by 140 per cent and 440 per cent, respectively, between 2012 and 2016 in Southeast Asia alone. The region, according to the report, is expected to post the highest compounded annual growth rate of 6.3 per cent between 2017 and 2025.
The investment in Perfect Day adds to Temasek’s portfolio of emerging food technology investments. Last year, the Singapore state-owned investment company led the $75-million funding round in Impossible Foods, the six-year-old California-based company known for its meatless burgers.
“Temasek’s investment in Perfect Day aligns with the firm’s belief that collective action is needed to achieve the United Nations Sustainable Development Goals by 2030,” Perfect Day said.