MICROBITE raises $1.5Mn funding in PreSeries-A
MICROBITE, a sister concern of ThePhiFactory® raises $1.5Mn funding in PreSeries-A from Vijay Madduri and other leading angel investors
The company will utilize this fund in establishing a new bioethanol plant using its proprietary technology that transformed the traditional batch process of bioethanol production into a continuous process, making it more efficient, faster, and cheaper
Hyderabad, April, 2022: MicroBite, a sister concern of the award-winning startup ThePhiFactory, has raised $1.5 Mn from Vijay Madduri, the ISL-winning Hyderabad FC’s co-owner and other angel investors.
The funds raised will be deployed for establishing a bioethanol plant that utilises its proprietary ‘counter-flow multistage extractive fermentation’ technology in producing BioEthanol with improved chemical kinetics. The startup is also aiming to further its R&D findings for extension of this technology to other potential applications such as Beverages, Active Pharmaceutical Ingredients, BioPlastic industries.
In India, majority of BioEthanol production plants follow the first generation-based batch processes in producing bioethanol, which is not only time-consuming but also capital intensive. Greater requirements for manpower, safety and environmental compliances further add to this challenge.
This is where MicroBite’s micro-reactors technology is proving to be a game-changer. With its unprecedented control over the reaction process, the company can significantly improve the reaction speed of bio-reactions while also bringing down the CAPEX to an approximate of 25% of the market average price. MicroBite converted the batch process into a continuous process and leverages the switchability between variable feedstocks to produce bioethanol for faster, cheaper and more efficient operations.
MicroBite’s success can be attributed to the efforts of a team of scientists led by its CEO Praveen Gorakavi, a Forbes Asia 30 Under 30 Honouree, who has a proven track record of successfully commercialising 28 technologies alongside various companies, including 7 Fortune500. In accordance to an estimate, his work and contributions to the FMCG companies reach a million households daily, underlining his passion for bringing change to the world.
Praveen Gorakavi, CEO, Microbite said, “With the infusion of additional incentives by the Government of India via National Ethanol Blending Programme, the Ethanol market in India is set to grow 250% by 2025-26. There is a wide gap between demand and supply, provoking an ‘Ethanol Rush’. A lot of companies are looking to enter the biofuel industry, however, the nature of capital requirement is influencing their possibilities. Economies of scale are hampering the chances of smaller sized players in the industry. We have developed a technology that not only makes it possible to setup a production plant at reduced capital costs, but also operates with improved chemical kinetics; while also giving an option of raw material switch ability. We can switch our fermenters between grains-based and molasses- based, even while during the operation without needing maintenance time off”
Vijay Madduri, the leading Investor who co-owns the Hyderabad Football Club that recently turned victorious in Indian Super League 2022, said “BioEthanol will be a major contributor towards environmental sustainability in the future. Indian Government is rightly promoting the biofuel industry via Ethanol blending programme, aiming to reduce the country’s carbon footprint. We are confident on our technology and this is just about right time to enter in this industry.”
India imports 82% of its crude oil that accounts to nearly $100Bn a year. In accordance to the India’s ambitious AtmaNirbhar Bharat ( Self Reliance ), the government of India announced the blending programme to cut down the imports by upto 20% by 2025.