Zero Cow Factory, a Surat-based startup producing animal-free milk protein and dairy products, has raised $4 million in a seed funding round from Green Frontier Capital, GVFL, and Pi Ventures. Spanish diary firm Calidad Pascual’s investment arm—Pascual Innoventures, also participated in the funding round.

As per the startup, the freshly raised funds will be used to accelerate its research and development, increase production capacity and acquire regulatory approvals for commercial launch in the market.

Zero Cow Factory | Animal-free Milk Protein And Dairy Products

Started by Parini Kapadia and Sohil Kapadia in 2021, Zero Cow Factory is a Surat-based startup that produces milk through biotechnology.

It replicates cow’s milk texture, nutrient profile, taste and appearance by using an in-house developed patented technology. Using bioengineering microbes and precision fermentation. the startup claims to be producing India’s first plant-based protein and dairy products.

Speaking on the development, Sohil Kapadia, co-founder and CEO of Zero Cow Factory, said,

“We are excited to partner with our investors’ outstanding setup and combine them with our talented team, which positions us uniquely to lead the way in building a global dairy 3.0 that is animal-free, sustainable and scalable.”

The Surat-based startup has developed a patented technology to produce dairy proteins- casein and whey. Zero Cow Factory claims it is more sustainable as the technology requires 98% less water, emits 84% fewer CO2 emissions and consumes 65% less energy.

As per the startup, its first product, which has A2 Beta-casein, is healthier as it is free from indigestion-causing A1 milk protein. After obtaining global regulatory approvals, the Surat-based startup plans on developing other milk-based products, including ice cream, cheese, and yogurt.

Commenting on the development, Sandiip Bhammer, co-managing partner and founder at Green Frontier Capital, said,

“With cattle being the number one agricultural source of greenhouse gases, precision fermentation startups have the potential to disrupt the dairy industry globally. If the world (and India) has to achieve its net-zero goals, there needs to be a pivot rather quickly to sustainable solutions like precision fermentation. And, in that regard, Zero Cow Factory is working assiduously on developing its own proprietary A2 casein-based solution, a weakness which plant-based ingredients have not yet been able to address successfully.”

Despite the funding crunch, several startups across categories managed to raise funds. Recently, Polytrade, a web3 protocol, raised $3.8 million in a seed funding round. DesignCafe, a Bengaluru-based home interior solutions brand, raised Rs 40 crore in a follow-on Series B round of funding. AI-driven investment platform Univest raised $1.5 million in a seed funding round led by the US-based Trinity Media group.

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