Loopworm, a biomanufacturing company based in Bengaluru, has raised US$3.25 million in a pre-series A funding round.

This round was co-led by WaterBridge Ventures and Enrission India Capital, a Japanese venture capital firm.

Founded in 2019 by Ankit Alok Bagaria and Abhi Gawri, Loopworm focuses on producing insect-derived proteins and fats for aquaculture and pet nutrition.

The company is also developing a recombinant protein production platform that uses silkworms for applications such as diagnostics and animal vaccines.

The company plans to use the new funding to commercialize its recombinant protein platform.

It is targeting applications that face fewer regulatory challenges.

🔗 Source: Entrackr

🧠 Food for thought

1️⃣ The insect protein industry is entering a high-growth investment phase

Loopworm’s latest funding round reflects a broader pattern of substantial investment in the insect protein sector, with major competitors attracting even larger amounts.

Leading European companies like InnovaFeed raised €40 million in 2018, planning to invest over €200 million in launching five new production sites1.

Ÿnsect secured a massive €343 million to build what it calls the world’s largest insect farm for mealworm production2.

The global insect protein market is projected to reach USD 1,446 million by 2032, growing at an exceptional CAGR of 50.5% from 2024 to 2032, demonstrating investor confidence in this alternative protein source3.

This surge in funding is enabling rapid scaling of production capacity, with companies like Loopworm operating substantial facilities (6,000 tonnes per year) to meet growing international demand.

The investment momentum suggests we’re witnessing a transition from experimental stage to commercial scale in the insect protein industry, with venture capital betting on insects becoming a mainstream protein source.

2️⃣ Silkworms emerge as versatile bioreactors for protein production