Who Made the Cut? Govt Selects First Biotech Startups for RDI Fund

The government's ₹1 trillion Research, Development and Innovation (RDI) Fund is set to support its first batch of biotechnology startups, with the Biotechnology Industry Research Assistance Council (BIRAC) selecting seven to eight companies for funding, according to a Business Standard report.

The first cohort includes Fermbox Bio, Revelations Biotech, 4baseCare, Sea6 Energy and Telluris Biotech. The report said each startup is expected to receive funding of around ₹25 crore on average, while an official announcement is likely in the coming weeks.

BIRAC received nearly 200 applications after inviting proposals in February. Around 50 proposals have been evaluated so far, with nearly eight startups making it to the first round of funding.

Funding to Support Biotech Innovation

BIRAC is one of two second-level fund managers under the RDI Fund, alongside the Technology Development Board (TDB). The fund was launched last year to support commercially viable research in strategic sectors such as biotechnology, artificial intelligence (AI), 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 finance eligible biotechnology projects.

The report added that 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 around ₹450 crore.

Projects Focus on Domestic Innovation

The selected startups plan to use the funding to expand commercially viable biotechnology projects. According to the report, Bengaluru-based Fermbox Bio will set up a large-scale precision fermentation biomanufacturing facility to produce enzymes and yeast for India's ethanol industry, helping reduce import dependence.

Sea6 Energy will use the funding to scale up seaweed feedstock production, while Hyderabad-based Revelations Biotech plans to develop a synthetic biology project focused on the large-scale production of vitamin MK-7.

Under the RDI Fund, the government finances up to 50% of an approved project's cost, with the remaining investment to be arranged by the project developer through internal resources or commercial financing. Earlier this year, the TDB also announced the first five deeptech startups selected for support under the same fund.