Yixi Biotechnology, China's First HMOs Industrialization Company, Secures Nearly RMB 1 Billion in Pre-A+ Financing to Accelerate Process Optimization and Pipeline Development

VCBeat recently learned that Yixi Biotechnology, a technology-driven company focused on technological innovation and product development in synthetic biology, has completed a Pre-A+ financing round of nearly RMB 100 million. The round was led by Huangpu Bio, with participation from Oriza Holdings, Clivia Capital, Yizhan Capital, and Nanwan Baiao Fund. Existing investors STEPPE CAPITAL and HTI continued to follow on with additional investments.

According to reports, the proceeds from this round of financing will be primarily used for process iteration and industrialization of the company’s existing pipeline, as well as research and development of new product pipelines.

Yixi Biotechnology is the first synthetic biology company in China to achieve industrial-scale production of human milk oligosaccharides (HMOs).As the third most abundant component in human breast milk, human milk oligosaccharides (HMOs) have been confirmed by numerous scientific studies to block pathogens, promote the growth of beneficial bacteria, enhance immunity, strengthen the intestinal barrier, reduce the incidence of diarrhea and respiratory infections, lower the risk of food allergies and eczema, and support brain development. The addition of HMOs can effectively narrow the gap between infant formula and human breast milk, and they are currently included in many infant formula brands abroad. In addition to being added to infant formula/milk powder, HMOs can also be applied in probiotics, dietary supplements, functional foods, and foods for special medical purposes.

The production plant operated by Huangshan Tongxi Biotechnology Co., Ltd., a wholly-owned subsidiary of Yixi Biotechnology, is located in Huangshan, Anhui Province. It is the first and only HMOs production facility in China.. The factory currently has an installed production capacity of 300 tons, with expansion interfaces reserved to rapidly scale up capacity to 3,000 tons per year as market demand requires. Meanwhile, Phase II has been pre-planned with a designed capacity of 10,000 tons per year, covering nine subcategories of HMOs.Since the factory’s delivery in March this year, stable and continuous trial production has been successfully completed, enabling the provision of qualified research samples at the tonnage scale. To date, the company has established collaborations with multiple downstream enterprises both domestically and internationally, and has also initiated application-oriented research with several relevant scientific research institutes.

Nanjing Yixi Biotechnology's second product pipeline is feed-grade single-cell protein (SCP).Using lignocellulose from non-grain raw materials such as straw as a carbon source, single-cell protein is produced through microbial consortium fermentation to serve as dietary protein for livestock and poultry, including pigs, chickens, cattle, and sheep. This approach helps reduce reliance on imported soybeans and supports national food security. China imports nearly 100 million tons of soybeans annually, with expenditures exceeding RMB 400 billion, indicating a high degree import dependence. The primary challenge in substituting imported soybeans with microbial protein as a feed protein source lies in cost control. Nanjing Yixi Biotechnology Co., Ltd. has significantly reduced the production cost of microbial protein through strain isolation, domestication, combinatorial cultivation, and innovations in multiple process technologies. Industrialization of this product line is expected to be achieved next year.

Yixi Biotechnology is committed to driving product research, development, and production through rigorous scientific research and technological innovation. While developing products, the company continuously explores foundational technologies and the underlying logic of life. In terms of product portfolio strategy, Yixi Biotechnology has adopted food additives as its entry point, with multiple product pipelines running in parallel. While diligently focusing on product development, Yixi Biotechnology remains mindful of the mission bestowed by the times, adhering to technological innovation and transformation with the aspiration of becoming a great technology-driven enterprise.

After years of rapid expansion, synthetic biology has entered a new phase that requires tangible outcomes to validate its potential, with industrialization becoming the industry’s new cornerstone. Moving forward, the focus for many practitioners will likely shift from “where to go” to “how to get there.”

Nanjing Yixi Biotechnology Co., Ltd. stated that, like still waters running deep, the company is advancing steadily and adhering to a strategy of “quality over quantity.” It continues to drive the transition of its products from the “laboratory” to the “factory,” firmly believing that cost control is key to successful industrialization. The company plans to achieve its established goal of having three industrialized products within the next three years.

Yao Liang, Investment Director of Huangpu Medical FundDenotes:

Human milk oligosaccharides (HMOs) represent a category that prominently demonstrates the advantages of biosynthetic methods, effectively addressing the challenges associated with chemical synthesis, such as complexity, multi-step processes, expensive raw materials, and the inability to achieve large-scale commercialization. We are highly optimistic about the application prospects of HMOs produced via biosynthesis. As a leading enterprise in China with industrialization capabilities for HMOs, Nanjing Yixi Biotechnology Co., Ltd. has broken through traditional technological constraints by implementing comprehensive element and process innovations to optimize the entire production chain. From carbon sources, strains, and culture media to glycosyl activation, conversion, and the integration of process modules, the company has achieved absolutely low costs under mass production conditions, positioning itself for significant market opportunities globally.

Huangpu Medicine Fund is a professional private equity investment management institution. Its primary sponsors include Guangzhou Development District Holding Group, LEADING CAPITAL, BeiGene, and Guoju Venture Capital. The fund focuses on investments in the life sciences and healthcare industries, with extensive investment layouts in biological drugs, innovative medical devices, and synthetic biology. Leveraging BeiGene’s R&D strengths in biologics, its funds are based in the Guangdong-Hong Kong-Macao Greater Bay Area, integrating academic resources from China and around the world. They are dedicated to incubating and empowering projects in life sciences, innovative healthcare, and synthetic biology, working closely with outstanding entrepreneurs to co-create first-class products, thereby contributing to human health and the fight against disease.

Steppe Capital is a new-generation venture capital firm in China, dedicated to identifying the most vibrant entrepreneurs who will shape the next decade and growing alongside them to create long-term value. “Advising for Vitality” encapsulates Steppe’s vision and mission. This vitality represents both the direction of structural change in our era and the resilience and evolutionary power of entrepreneurs. Focusing on early-stage and growth-stage investments, with individual ticket sizes ranging from $3 million to $30 million, Steppe Capital prioritizes sectors such as robotics, artificial intelligence, and technology-enabled services, thereby empowering the upgrade of China’s tech-driven new service economy.

Oriza Holdings has focused on the equity investment sector since its establishment in 2001. With assets under management exceeding RMB 100 billion, it is one of China’s leading equity investment firms. Since its inception, the company has prioritized investment opportunities in emerging industries such as integrated circuits, biopharmaceuticals, artificial intelligence, and nanotechnology applications, adhering to its commitment to supporting the real economy and promoting industrial transformation and upgrading. To date, Oriza Holdings has made direct investments in over 1,250 projects, while its fund-of-funds platform has invested in 153 sub-funds.

Clivia Capital, established in 2015, is a professional investment institution integrating primary and secondary markets. It leverages forward-looking industry dynamics in the primary market to support secondary market positioning, while trading hotspots in the secondary market inspire industrial layout in the primary market. Additionally, its secondary market team provides professional advice for IPO exits of primary market investments. Clivia Capital currently manages nearly RMB 2 billion in assets. Headquartered in Suzhou, its equity investment activities are centered on the Jiangsu-Zhejiang-Shanghai region and extend across China, primarily targeting sectors such as semiconductors, Internet of Things (IoT), new materials, advanced manufacturing, healthcare, and the dual-carbon economy.

Sichuan Yizhan Capital Management Co., Ltd. was established in 2019 and is headquartered in the Chengdu Hi-Tech Industrial Development Zone. Upholding its sincere original aspiration of being “both investors and entrepreneurs,” the company practices an investment philosophy of “investing early, investing in small-scale ventures, investing in hard technology, and investing in areas of national strategic need.” It focuses on equity investments in early- to mid-stage technology projects in fields such as biotechnology and new materials, aiming to facilitate the transformation of scientific and technological achievements. By fostering a cycle from research to industry and back to research, it seeks to create a “circular symbiosis” across the upstream and downstream segments of the industrial chain.

Nanwan Baiao Fund is a specialized healthcare fund under Leading Capital, focusing on investments in the life sciences and healthcare industries. The fund has extensive investment holdings in areas such as biologics, innovative medical devices, and synthetic biology. Dedicated to incubating and empowering early-stage life science, innovative healthcare, and synthetic biology projects, the fund works closely with outstanding entrepreneurs to co-create world-class products, aiming to help humanity overcome diseases and promote health and well-being.

Shenzhen HTI, established in 1994, is a specialized financial services institution founded by the Shenzhen Municipal Party Committee and Municipal Government to address financing difficulties faced by small and medium-sized technology enterprises. It holds the highest AAA credit rating for main body creditworthiness in the capital market. Currently, the Group has paid-in capital exceeding RMB 13.8 billion, net assets of RMB 24.3 billion, and total assets of RMB 44.7 billion. Its business scope covers bank loan guarantees, engineering guarantees, bond credit enhancement, venture capital, fund management, micro-lending and pawnbroking, commercial factoring, and more, providing comprehensive investment and financing services to enterprises from their start-up to mature stages.

Yixi Biotechnology, established in 2019 and headquartered in the Suzhou Industrial Park, is a company specializing in raw material products within the field of synthetic biology. Leveraging technology and creativity, we aim to expand the boundaries of human food sources. With food additives as our entry point, multiple product pipelines are currently under research and development or have already achieved industrialization. Guided by research and imagination, we explore new forms of life. While developing products, we continuously investigate foundational technologies and the underlying logic of life, striving to gain new insights and understanding of life, thereby achieving breakthroughs in both technology and products. Yixi Biotechnology pioneered the industrialization of biosynthetic human milk oligosaccharides (HMOs) in China. In 2022, we commissioned a production line with an annual capacity of 300 tons, featuring reserved expansion interfaces that allow capacity to be scaled up to 3,000 tons per year within one year as needed.

Yixi Biotechnology’s feed-grade alternative protein technology utilizes non-grain cellulose as a carbon source to rapidly and efficiently synthesize microbial protein, which can be widely applied in animal feed and other sectors, thereby contributing to national food security. Yixi Biotechnology is also committed to exploring the principles of life, understanding evolutionary changes, and advancing the knowledge of creation.