Frontier IP Group PLC (AIM:FIPP) portfolio company Nandi Proteins has raised over £500,000 through a convertible loan, with contributions from Nesta Impact Investments and Scottish Enterprise.
The convertible is part of a broader initiative aiming to raise approximately £1.5 million. The new investment will be directed toward the development of Nandi's egg white replacer, which has garnered interest from the baking and meat alternative industries.
Nandi also recently signed a commercial licence with a global food ingredients company to bring its meat and fat replacers, based on collagen, to market worldwide.
In addition to the egg white replacer, Nandi is advancing its technology to replace methylcellulose in plant-based meat alternatives and chemical emulsifiers in baked goods with vegetable and whey proteins, respectively. The equity funding round is expected to raise an additional £1 million later this year.
Frontier CEO Neil Crabb said: "Nandi's technology has huge potential to replace undesirable ingredients used widely in the food industry.
"We very much welcome the support from Nesta, the UK government fund for social good, which underlines the value of the company's work."
Frontier holds a 19.7% stake in Nandi.