BERKELEY, CALIF. — Perfect Day, a producer of animal-free dairy proteins, has raised an additional $160 million through a new tranche led by the Canada Pension Plan Investment Board (CPP Investments). The new funding follows an initial $140 million Series C round announced late last year led by Temasek with contribution from existing investors.
In recent months, Perfect Day has doubled its production capability while significantly reducing costs several years ahead of expectations. The startup also recently achieved Generally Recognized As Safe (GRAS) status from the US Food and Drug Administration for its proprietary flora-made protein.
“We never doubted we’d reach this point, we just didn’t expect to get here so quickly,” said Ryan Pandya, co-founder and chief executive officer of Perfect Day. “And, thanks to our world-class team and investors, we’re not planning to take our foot off the pedal anytime soon. The coronavirus pandemic has shown just how fragile our food system is. We’re committed to building real change that prioritizes diversity, agility and resilience.”
Perfect Day produces dairy proteins through fermentation in microflora instead of cows. Because the company and its partners may quickly increase or decrease production based on demand, it claims to have a unique advantage over the dairy industry, which has experienced oversupply during the pandemic. The company said it plans to build a turnkey network of localized producers and processors to avoid supply chain bottlenecks.
“We’re grateful for the continued support of our investors from all over the world,” said Perumal Gandhi, co-founder of Perfect Day. “But, of course, our mission is about much more than money. We continue to believe the next generation of protein will be driven by production speed, price and taste, and we’ll have several exciting updates to share in the months ahead as our commercial partners start to build momentum.”
Perfect Day’s protein may be used in a range of products, including ice cream, milk, cheese and butter, to deliver the taste and texture of dairy without the environmental, animal welfare or food safety concerns. Products formulated with Perfect Day protein may be labeled as vegan and lactose-free and are launching soon as the company expands partnerships with food and dairy manufacturers.