Avaana Capital, an early-stage investment firm, led the funding round for agri-biotech startup GreenGrahi, which raised Rs 32 crore.

The round, which was primarily equity-based, also included Huddle, Campus Fund, Blume Founders Fund, and angel investors such as Nexus Venture’s Nitin Sharma and Northpoint Capital’s Sameer Brij Verma.

The cash will be used to develop and scale its insect biomanufacturing technology, hire employees, and expand globally.

Sharma and Shivali Sugand founded the Delhi-based startup in 2021, which produces high-quality insect-based proteins, functional oils, and hydrolysates out of agricultural leftovers.  These products are designed exclusively for aquaculture, poultry, and pet nutrition, with enhanced digestibility, nutritional content, and more consistent price than standard feed ingredients such as fishmeal and soy, according to the company.

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“Scale-up and global expansion are on the commercial side, but on the R&D side, our team is continuously working to extract more and more beneficial ingredients from the insect,” Siddharth Sharma, the co-founder, told ET.

The company has also created biological agricultural inputs, such as biofertilizers, biostimulants, and biopesticides, to improve soil health and crop resilience.

The business-to-business (B2B) platform supports more than ten customers, including organizations in the animal and plant nutrition industries.

“With these ten customers alone, we have Rs 560 crore in demand.  But the problem is more on the manufacturing side—we need to scale up quickly enough to fulfill this demand,” said Sharma, stressing that the money will assist increase production to nearly 50 times its current capacity.

The firm plans to expand its scientific staff and enter foreign markets such as the United States, United Kingdom, and the European Union.  Sharma estimates these regions to account for around 30-35 percent of the company’s business, owing primarily to demand from pet food producers.

“We currently have a production plant that can process approximately three to four tonnes of raw material each day.  Our next plant will process up to 150 tons per day. We hope to begin global exports in the first quarter of next year after the new factory is completed by the end of this year,” he added.

Shruti Srivastava, investment director at Avaana Capital, commented on the investment, saying, “Their proprietary insect biotechnology and bioprocessing platform enables the production of high-performance, cost-efficient ingredients at scale—helping build resilient food supply chains for global food security through science-backed, market-ready solutions.”