Food tech company Better Dairy secures $22 million in Series A funding
- ByStartupStory | February 28, 2022
The company, Better Dairy was formed in 2019 by Jevan Nagarajah in the United Kingdom, is in the research and development phase of developing animal-free cheeses utilising precise fermentation. Nagarajah and Better Dairy first came to attention in 2020, when the company raised £1.6 million in seed funding backed by Happiness Capital.
According to Nagarajah, Better Dairy uses precision fermentation to create products that are biochemically comparable to traditional dairy. The method is identical to that of producing beer, but the ultimate product is dairy.
Better Daily is tackling hard cheeses, a more complex process, in a more sustainable way, while other food tech startups are handling softer cheeses like mozzarella or whey proteins.
It’s working on the science of determining texture and then maturing so that all of the components can be combined into a single shelf-stable product. Nagarajah believes that in the next 18 months or so, precision fermentation will reach unit economics, or price parity with similar artisanal cheeses.
Better Dairy isn’t the only company vying for the dairy market. Animal-free cheese and dairy products are being developed by companies such as Clara Foods, NotCo, Climax Foods, and Perfect Day.
Nagarajah, on the other hand, feels that the new money, which will be used to advance precision fermentation technology, would allow the company to move ahead of the competition and be the first to launch hard cheeses in this market.
The funds will be used to increase the company’s personnel from eight to 35 individuals, as well as to build a new 6,000-square-foot laboratory and office facility in East London.
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