Phytolon (Yokne’am, Israel) has announced the close of its $23.6 Million Series B financing to commercialize its natural food colors in the U.S. This round reflects growing market demand for high-performing, economic and sustainable natural alternatives to synthetic dyes.

This round was led by an undisclosed strategic investor. The funds were secured during three stages. Most of the funds were secured in the last stage in April, with participation from existing investors, including Millennium Foodtech, NextGen Nutrition (NGN), Colorcon Ventures and Yossi Ackerman.

The financing follows the FDA (U.S Food and Drug Administration) approval of Beetroot Red, the company’s first natural colorant in its portfolio (an effective date of the final ruling is yet to be set). Beetroot Red complies with the required standards of performance and clean label that CPGs and consumers expect in the modern food markets. Produced via fermentation of baker’s yeast, Beetroot Red is an elevated natural color rooted in cost efficiency, robust supply and environmental sustainability.

“This new funding will be allocated to support sales and supply to CPGs and to distribution partners in the U.S. and beyond,” said Halim Jubran, Phytolon’s co-founder and CEO. “I am excited to see our portfolio of strategic investors increase, enabling us to grow our business and establish our footprint in the market.”

“Phytolon is at the nexus two mega-trends—consumer and regulatory demand to remove artificial dyes and advances in fermentation to offer natural ingredients with better functionality, cost and sustainability,” added James Cali, general partner at NGN. “With a strong network of strategic partners and recent FDA approval, Phytolon is well positioned to capitalize on the transition toward natural dyes across food and supplements products.”

For more information, visit www.phytolon.com