BIRAC selects first cohort of biotech startups for funding under ₹1T RDI initiative

The Biotechnology Industry Research Assistance Council (BIRAC) has selected seven to eight biotechnology startups as the first cohort to receive funding under the government’s ₹1 trillion Research, Development and Innovation (RDI) Fund, according to people familiar with the matter.

The selected startups include Fermbox Bio, Revelations Biotech, 4baseCare, Sea6 Energy and Telluris Biotech, the sources said. The average investment under the RDI Fund, a sources said, is expected to be about ₹25 crore per startup.

BIRAC received nearly 200 applications from biotech startups after inviting proposals in February. It has so far screened around 25 per cent of the applications — about 50 proposals — and selected nearly eight companies, according to a person involved in the evaluation process.

An official announcement in this regard is expected in the coming weeks. BIRAC did not respond to an email query sent by this newspaper.

BIRAC, along with the Technology Development Board (TDB), is one of two second-level fund managers under the RDI Fund, which was launched last year to back commercially viable research in strategic sectors, including biotechnology, artificial intelligence, quantum computing, robotics, space and energy transition.

BIRAC is set to receive an initial allocation of ₹2,000 crore from the Special Purpose Fund under the Anusandhan National Research Foundation to back eligible biotech projects.

While term sheets have been signed with all the selected startups, agreements with Fermbox Bio, Revelations Biotech and Sea6 Energy alone are collectively valued at ₹450 crore, the sources said.

Bengaluru-based Fermbox Bio, they said, has been selected to set up a large-scale precision fermentation biomanufacturing facility with 400 kilolitres of fermenter capacity. The project aims to produce “made-in-India” cellulosic enzymes for second-generation ethanol and active dried distiller’s yeast for first-generation ethanol, strengthening the domestic biofuels ecosystem while reducing import dependence.

Sea6 Energy, also based in Bengaluru, is set use the funding to scale up seaweed feedstock production, while Hyderabad-based Revelations Biotech will undertake a synthetic biology-led project focused on the metabolic engineering of Bacillus subtilis for large-scale production of vitamin MK-7, said the people in the know.

The mega fund
In FY27 Budget, Finance Minister Nirmala Sitharaman allocated ₹20,000 crore to the RDI fund, matching last year’s allocation.

TDB, which has also been allocated an initial Rs 2,000 crore under the fund, announced the first five deeptech startups selected for RDI support in May this year.

The RDI Fund finances up to 50 per cent of the assessed project cost, with the balance to be met by the project proponent through internal resources or commercial financing. Eligible applicants must be headquartered in India, have majority domestic ownership and undertake projects with Technology Readiness Level 4 or above, targeting technologies that have moved beyond the proof-of-concept stage.

Backing deep biotech

• Firms selected by BIRAC include Fermbox Bio, Revelations Biotech, 4baseCare, Sea6 Energy and Telluris Biotech
• Agreements with Fermbox Bio, Revelations Biotech and Sea6 Energy are collectively valued at ₹450 crore
• Termsheets have been signed with all selected startups
• BIRAC is set to receive an initial ₹2,000 crore allocation for investments

Business Standard