By Lynda Kiernan
The Innovation in Food and Agriculture Fund, a vehicle managed by Sathguru Catalyser Advisors, has made a $4 million commitment to Telluris Biotech India Private Limited in exchange for a minority stake in the startup.
Founded by Venu Polineni in Telangana, India, Telluris Biotech is an early-stage company developing environmentally-sensitive biological and bio-molecular solutions for some of the greatest challenges facing agricultural production and food processing.
Currently, Telluris Biotech is focusing on developing proprietary control products to combat root-knot and cyst nematode-related diseases. The company’s research has established proof-of-concept for four different products, and it is currently gathering field trial data for registration.
Root knot nematodes are responsible for about 12.3 percent of all global crop losses each year, at a cost of approximately $167 billion, according to the company. In India, annual harvests of crops such as capsicum, tomato, chilli, okra, gherkins, muskmelon, watermelon, carnations, roses, gerbera and anthuriums are affected, and in some instances, losses have reached 80 percent in protected growing conditions.
Plant Health and Nutrition (including biologicals) have raised the most equity capital of all segments, totaling $2.1 billion since 2014, according to John Campbell, managing director of Ocean Park, a boutique investment bank, and speaker at this year’s AgTech Nexus USA.
In his recent GAI Gazette article: AgTech: Investment Trends to Watch in a Blooming Industry, Campbell highlights biologicals, including biopesticides, bioherbicides, and soil biostimulants, with particular interest, stating,“Fully 40 percent of the Plant Health and Nutrition investment category have been for biologicals…”
This traction is largely being driven by consumer demand in both developed and emerging markets for greater sustainability in food production systems, and greater levels of commitment to safety in food processing.
“As a consequence, consumers are playing an increasingly influential role in how food is handled and processed across the supply chain (production, processing, packaging, and distribution, etc.),” noted Philippe de Lapérouse and Mark Zavodnyik, of HighQuest Consulting who included Crop Services and Inputs as a sector to watch in 2019.
“Our investment in Telluris is a contribution towards sustainable agriculture with science-based solutions that can provide true health and environment benefit to growers,” said Krishna Kumar, chairman, Sathguru Catalysers. “We perceive the opportunity for Telluris to provide gains to growers through their pipeline of products that are uniquely positioned to application in a wide range of crops.”
Meanwhile, further along the supply chain, Telluris Biotech is working to develop protocols for two molecular methodologies to detect Bacillus cereus and Listeria monocytogenes within a single food sample. About 200 diseases are transmitted through food pathogens, leading to 9,000 deaths per year in India, and the presence of Listeria monocytogenes in ready-to-eat foods in the country points to the probability that contamination is occurring at the processing stage.
With the capital secured through this funding, Telluris is planning bring this technology to new markets – not only across India, but into worldwide market as well.
“We are excited to propel our growth to markets with investment from Innovation in Food and Agriculture Fund, the sector focused fund that is a best fit for us to advance our innovation in global markets,” said Venu Polineni, the Founder of Telluris Biotech India Pvt. Ltd.
“Our foray to markets will provide unparalleled environment friendly biocontrol and biomolecular products to farmers in India and elsewhere who face severe challenges from the root knot, cyst nematodes and plant root pathogens. Our extensive research based innovative solutions will result in the farmers’ efforts to protect their crops and enhance yield significantly.”
– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.