Bluepha Secures RMB 1.5 Billion Series B Funding to Accelerate Its 'T-Strategy' for Sustainable Biomanufacturing

On January 10, 2022, Bluepha, a domestic leader in the synthetic biology sector, announced the completion of its Series B3 financing round, bringing the total amount raised in its Series B rounds to RMB 1.5 billion. The Series B3 round was co-led by Genesis Capital and the China State-Owned Enterprise Mixed-Ownership Reform Fund (the “Mixed-Ownership Reform Fund”), with participation from Zhongping Capital, Jiangsu Huanghai Financial Holding Group, and Zhongzhou Lanhai. Existing investors, including FreeS Fund, Country Garden Ventures, Hillhouse Ventures, and Sany Innovation Investment, continued to increase their investments. Taihe Capital continued to serve as the exclusive financial advisor.

Previously, Bluepha Microbiology secured cumulative financing of nearly RMB 700 million in its B1 and B2 rounds in February and August 2021, respectively. The funds from the Series B financing will be utilized for the construction and operation of large-scale production facilities for biodegradable material PHA, the development and deployment of the Industry 4.0 synthetic biology R&D platform SynBio_OS, and the research, development, and commercialization of new product pipelines, including regenerative medicine materials and engineered probiotics.

Bluepha was founded in 2016 by Dr. Zhang Haoqian from Peking University and Dr. Li Teng from Tsinghua University. It is an enterprise engaged in molecular and material innovation based on synthetic biology technology, dedicated to designing, developing, manufacturing, and selling novel bio-based molecules and materials. Bluepha helps B-end customers across various industries, including consumer goods, food, healthcare, agriculture, and industry, to achieve differentiated competition within their respective sectors.

On January 1, 2022, construction officially commenced on Bluepha’s first product line—a “super factory” with an annual production capacity of 25,000 tons of biodegradable material PHA—in Binhai County, Yancheng City, Jiangsu Province. Bluepha has accumulated substantial technical reserves and established a comprehensive intellectual property portfolio across all segments of the PHA technology chain, including strain development, bioconversion, separation and purification, and material modification. The performance of its products has been validated by multiple Fortune 500 clients, securing both orders and letters of intent from numerous enterprises. Meanwhile, Bluepha has signed strategic cooperation agreements with multiple partners in major countries and regions worldwide to continuously expand the global market for PHA.

Schematic Diagram of Phase I Planning for Bluepha's PHA Industrialization Project

Dr. Zhang Haoqian, Co-founder and CEO of Bluepha, believes that the product innovation chain in synthetic biology is exceptionally long. Through the research, development, and industrialization of PHA, Bluepha has accumulated extensive process data and engineering expertise. The company leverages Industry 4.0 technologies, such as automation and digitalization, to consolidate these data and experiences, enabling their reuse in the development and commercialization of future products. This resulting flywheel effect will constitute one of Bluepha’s core competitive advantages in the years to come.

To this end, Bluepha has established an interdisciplinary team comprising senior scientists and engineers from diverse fields, including robotics, software development, mechanical and electrical engineering, big data, and synthetic biology, to develop its synthetic biology R&D platform, SynBio_OS. The platform currently consists of three components: the flexible automated laboratory platform (BlueArk), the ultra-high-throughput fermentation platform (AutoFarm), and the intelligent cloud-based data system (CyberFarm). It is projected that within the next three years, SynBio_OS will further reduce the complete R&D cycle for each of Bluepha’s products by 70% compared to current benchmarks.

Dr. Li Teng, Co-founder and President of Bluepha, revealed that in addition to its existing technologies, Bluepha is developing engineered bacterial strains capable of efficiently synthesizing PHA from biological waste, along with supporting bioconversion and separation-purification processes. Leveraging Yancheng Binhai’s unique geographical advantages, green energy resources, and abundant biological raw materials, the company aims to establish a demonstrative synthetic biology “zero-carbon industry chain.” Beyond PHA, Bluepha is rapidly advancing the R&D of new products in application areas such as regenerative medicine materials, novel functional ingredients for cosmetics, new food additives, and engineered probiotics. Meanwhile, the company is exploring new business models to build an innovative ecosystem for shared growth with its partners.

Different forms of PHA: powder, granules, flakes, and films (from left to right)

At this point, Bluepha’s “T-shaped strategy,” comprising horizontal and vertical dimensions, has been fully implemented and is now evident. The “horizontal” axis refers to its synthetic biology R&D platform, SynBio_OS, while the “vertical” axis encompasses polyhydroxyalkanoates (PHA) biodegradable materials and other product pipelines commercialized through the R&D platform. This marks another step forward in Bluepha’s pursuit of its development goal: an innovative complex structured as “1 Super Laboratory + N Super Factories.” It also ushers in a new phase in which Bluepha continuously empowers partners across the upstream and downstream of the synthetic biology value chain, jointly realizing its sustainable development value proposition.

Peng Zhijian, Founding Partner of Yuansheng Capital, stated: “Underlying technologies in the biotechnology industry are undergoing rapid iteration. Against the backdrop of the overarching “carbon neutrality” trend, Yuansheng Capital favors biotech companies dedicated to addressing global challenges such as resource scarcity and environmental pollution. Bluepha Microbiology is a leading synthetic biology company in China, having made significant progress in the scaled production of its PHA biodegradable plastics. Meanwhile, it has established a distinctive high-throughput automation platform, leveraging platform molecules to expand into skincare and cosmetics, consumer goods, healthcare, and other sectors. The teams led by Hao Qian and Li Teng demonstrate exceptional learning capabilities, the perseverance and determination to commercialize innovative technologies, and a mission-driven vision to spearhead the transformation of next-generation production methods.”

The Mixed-Ownership Reform Fund stated: “Synthetic biomaterials represent a high-growth sector with substantial long-term potential. Beijing Bluepha Microbiology Technology Co., Ltd. is dedicated to the research, development, manufacturing, and sales of novel bio-based materials, while also providing synthetic biology technology solutions to its clients. Its flagship product, PHA materials, aligns with national policies such as the “plastic ban,” “carbon peaking and carbon neutrality,” and “green manufacturing,” as well as strategic initiatives like the “development of the new materials industry.” The Mixed-Ownership Reform Fund aims to provide long-term support to Bluepha Microbiology, thereby fostering the growth of industries related to “carbon neutrality” and green bio-based new materials.”

Dr. Wu Bin, CEO and Founding Partner of Zhongping Capital, stated: “Bluepha Microbiology holds an ambitious vision to profoundly impact social life through the synthetic biology industry. It has built an efficient, science-driven full-stack R&D platform, established a rich pipeline of microbial strains, and placed strong emphasis on industrial commercialization. At this critical juncture in PHA capacity expansion, we are optimistic about the team led by Hao Qian and Li Teng, who uphold the values of professional excellence and perpetual entrepreneurship, and are poised to achieve globally leading cost advantages in the near future. As a long-term fund managing insurance assets, Zhongping Capital practices value investing and ESG investing. We recognize the new solutions that synthetic biology offers for environmental friendliness and sustainable development. Going forward, we will continue to empower Bluepha Microbiology, strengthen its competitive moat, and jointly build a world-leading R&D and industrialization platform for synthetic biology.”

YuanSheng Capital was established in 2015. Its founder, Peng Zhijian, previously spearheaded the creation and leadership of Tencent’s global investment and M&A operations, helping Tencent build a globally leading industry ecosystem. YuanSheng Capital is dedicated to investing in growth opportunities within China’s economy. Upholding an ever-entrepreneurial model and spirit, it focuses on identifying and nurturing top-tier growth-stage entrepreneurs by addressing the grand challenge of enhancing consumer and enterprise efficiency through technology. YuanSheng Capital provides attentive support to portfolio companies, collaborating with their teams to strategize growth, attract top talent, pursue excellence, and drive continuous innovation, until they evolve into preeminent, great enterprises in their respective fields.

China State-Owned Enterprise Mixed-Ownership Reform Fund Co., Ltd. (hereinafter referred to as the “Mixed-Ownership Reform Fund”) is a national strategic industrial investment fund approved by the State Council and initiated by China Chengtong Holdings Group Ltd. (hereinafter referred to as “Chengtong Group”) under the entrustment of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). The fund has a total size of RMB 200 billion, with an initial phase size of RMB 70.7 billion. The mission of the Mixed-Ownership Reform Fund is to deepen pragmatic cooperation between state-owned enterprises and enterprises of diverse ownership structures, improve modern corporate governance systems, stimulate the vitality of market entities, and cultivate mixed-ownership enterprises with global competitiveness.

Zhongping Capital, established in 2016 and headquartered in Shanghai, currently manages assets of approximately RMB 40 billion. As a long-term fund managing capital from Ping An Life Insurance and government guidance funds, it was founded by a team of senior financial and industry experts. Adhering to the investment philosophy of “Long-term, Focused, Value-driven, and Empowering,” Zhongping Capital is committed to becoming a first-class alternative asset management platform in China with global influence. Specializing in deep empowerment investment and long-term value investment, the firm has continuously deployed capital in new economy industries and led numerous large-scale transactions. It has taken controlling stakes in Kingstar Technology, jointly acquired Life-Space with By-Health, and jointly acquired Urbaser with China Tianying. Additionally, it made strategic early-stage investments in nearly 20 companies, including SenseTime, New Journey Healthcare, and GCL Granular Silicon.

Jiangsu Huanghai Financial Holding Group Co., Ltd. is a wholly state-owned, first-tier enterprise established with capital from the Yancheng Municipal People’s Government. Its wholly-owned subsidiary, Yancheng Innovation and Entrepreneurship Investment Co., Ltd., focuses on new energy and new materials companies driving “carbon neutrality” and “carbon peaking,” specialized and sophisticated enterprises that help address China’s “chokehold” technological bottlenecks, and industries aligned with the city’s development strategy, such as electronic information. Adopting a long-termist perspective, the firm assesses and empowers the growth of intrinsic value in its portfolio companies, fully supporting innovation and entrepreneurship while promoting industrial transformation and upgrading.

Zhongzhou Blue Ocean Investment Management Co., Ltd. is a wholly-owned subsidiary of Central China Securities Co., Ltd. and is one of the largest alternative investment companies affiliated with securities firms in China.