Loopworm Nets $3.3 Mn To Manufacture Recombinant Proteins

Biotech startup Loopworm has raised $3.3 Mn (about INR 28 Cr) in its pre-Series A funding round co-led by existing backer WaterBridge Ventures and Japanese VC firm Enrission India Capital.

The Bengaluru-based startup will use the fresh proceeds to kick off the production of recombinant proteins (more on this later) and set up a new commercial facility for recombinant protein production.

In a statement, it also said that a chunk of the capital will be utilised to strengthen its R&D capabilities and global patent portfolio. Besides, Loopworm plans to validate its product and secure regulatory approvals and certifications to operationalise the new unit. “This would accelerate global sales for our existing and new products,” it added.

Founded in 2019 by IIT-Roorkee alumni Ankit Alok Bagaria and Abhi Gawri, Loopworm manufactures high-protein animal feeds from silkworms. It also churns edible oils from silkworm pupae, and caters to segments such as cosmetics, human wellness and plant nutrition.

The biotech startup claims to export its proteins and edible oils to Europe, South America and ASEAN countries. It also operates an insect processing facility in Bengaluru, which has a production capacity of 6,000 tonnes per year. However, it has another ace up its sleeves.

Loopworm’s Recombinant Tech

The biomanufacturing startup is developing a novel reactor-free recombinant protein production platform using silkworms. Recombinant proteins are artificially produced using genetic engineering and are used for diagnostics, therapeutics, and biomaterial development.

Traditionally, recombinant proteins are manufactured by inserting genes into host organisms like yeast or bacteria to “instruct” them to make proteins. The process requires use of expensive equipment and energy-intensive bioreactors. However, Loopworm uses its proprietary technology to produce proteins by using silkworms as living factories. The startup claims that this leads to faster, cheaper and sustainable biomanufacturing practices.

“Our reactor-free approach using silkworms changes the economics entirely. Having proven the technology, we are now focusing on commercialising our recombinant protein production platform, initially targeting diagnostics, animal vaccines and other applications with lower regulatory barriers,” said Loopworm cofounder and CEO Bagaria.

The startup said it has been working on the development of its proprietary recombinant protein production technology for the past 3 years. Loopworm claims to have filed two patents and has a pipeline of six more patent applications to be filed over the course of next three years.

It claims to have completed the development of the base technology, enabling it to produce recombinant proteins with “good yields and decent quality”.

With the latest fundraise, Loopworm has raised $6.65 Mn to date. It last raised $3.40 Mn in 2022 in its seed round from Omnivore Ventures, WaterBridge Ventures, Titan Capital, Climate9ers Capital and other angel investors.

According to its standalone financial statements for FY24, Loopworm’s total revenue rose over 91% to INR 1.64 Cr from INR 85.78 Lakh in the previous year. Net loss widened 282.6% to INR 5.70 Cr from INR 1.49 Cr in FY23.

As Loopworm forays into the protein manufacturing space, it would be up against some of the giants in the space like Bharat Biotech, Abgenex, IMGENEX INDIA, Jubilant Biosys, among others.

As per a report, the global recombinant protein market is projected to become a $5.57 Bn opportunity by 2030.

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