October 5, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

Perfect Day, a producer of animal-free, lab-created dairy proteins and the maker of the world’s first animal-free milk protein, announced that Temasek and Canada Pension Plan Investment Board (CPP Investments) have returned to co-lead a $350 million Series D for the company. 

Other participants giving strong support to the round, which brought total funding to-date for the company to $750 million, included long-term investors Horizons Ventures, Bob Iger, and SK Inc.

Founded in 2014 by bioengineers Ryan Pandya and Perumal Gandhi, Perfect Day has a mission to reimagine food production for a more sustainable future by producing animal-free proteins in a lab that are nutritionally identical to proteins derived from animals.

The company’s flagship product – the world’s first precision-fermented cow-free milk protein – launched in 2020. This animal-free, soy-free, lactose-free, and vegan whey and casein are then used to make free-versions of cheeses, yogurts, ice creams and other products that taste and are nutritionally the same as their animal-derived versions.

Perfect Day uses microflora to create proprietary animal-free milk proteins that an ISO-compliant third-party reviewed life cycle assessment (LCA) found reduces water consumption by as much as 99 percent, reduces greenhouse gas emissions by up to 97 percent, and non-renewable energy use by as much as 60 percent, compared to conventional production methods.

It wasn’t long before the company realized that dairy proteins were only the beginning; that their technology and business had the potential to benefit the entire supply chain.

“When we first started this almost eight years ago, we had the simple goal of creating a way to make dairy without animals,” said Ryan Pandya, co-founder and CEO, Perfect Day. “We quickly realized that we could maximize our positive impact for the planet and the global food system by applying our technology and know-how across the supply chain.”

This shift in focus led to the company’s 2016 expansion into B2B supply chain innovation through selling protein to food companies. Three years later, in 2019, Perfect Day’s founders expanded their reach into consumer products through The Urgent Company (TUC) – which today is a full part of the Perfect Day umbrella.

The company’s success led them to a position from where they could make a difference for other startups working to evolve food production. Last year adding the Synthetic Biomanufacturing Facility (SBF) –  a bioprocess scale-up facility at Utah State University in Logan, Utah, which it stated it will use to expand into ‘enterprise biology’. 

“We first got into the ingredient business because food companies, big and small, were eager to work with the ingredients we had successfully scaled,” said Perumal Gandhi, co-founder, Perfect Day. “Today, something analogous is happening on the technology side. There are innovators all over the world with ideas and ambitions similar to our animal-free milk protein, but need help getting there. We’re standing up business models to be able to share our demonstrated capabilities in a way that maximizes upsides for all, yet ensures that Perfect Day remains at the forefront of our new industry.”

With the capital from this round, the company says it will be able to drive its expanded focus across biological engineering, ingredient innovation, and consumer products, with a portion of the funds being allocated to TUC, which announced the launch of Modern Kitchen, a new brand of animal-free dairy products which will debut its animal-free cream cheeses in stores in the coming months. 

The scaling of alternative protein businesses such as Perfect Day is being made possible by the scaling up of the funding backing them. This round is tied as the largest for the year with the $350 million Series C raised by Nature’s Fynd in July 2021 in support of its alternative protein called Fy.

“We know consumers today expect great tasting meat and dairy alternatives without compromising on health or sustainability,” said Thomas Jonas, CEO and co-founder, Nature’s Fynd, at the time. “And Fy – our natural, complete vegan protein delivers on all fronts: amazing taste and texture while being healthier for people and gentler on the planet than traditional proteins.”

However, a cohort of rivals are not far behind in their funding efforts. In June of this year, Motif FoodWorks, launched by Boston-based Ginkgo Bioworks in March 2019, raised a $226 million Series B, and Chilean startup NotCo, which uses AI in the development of plant-based alternative foods, raised a $235 million Series D. 

As the category becomes more competitive, and in anticipation of more involved corporate operations to steer the success of its three businesses toward an eventual future of a strong public market performance, Perfect Day has also added to its executive team over the past quarter, adding:

~ TM Narayan from HCL Technologies, in the role of chief of business operations.
~ Allison Fowler from Perfect Snacks, in the role of chief marketing officer.
~ Alex Brittain from PepsiCo, in the role of senior vice president, International.
~ And, Chuck Thorn from Cargill, in the role of vice president, finance.  

“We’re a part of a new generation of leaders coming of age, armed with the world’s best science, systemic thinking, and compassion,” said Pandya. “We’ve seen it in lifesaving vaccines, and we’re about to see it in food. We’re proud of all our leaders – every single employee at Perfect Day, our partners and investors – and can’t wait for this next chapter.”

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.