USDA-Backed Loan Helps Plantible Foods Raise $35M to Scale Up Rubisco Protein Fivefold

Californian startup Plantible Foods has successfully raised $35M in USDA-backed loan and equity funding to quintuple its manufacturing capacity for Rubisco protein, derived from duckweed. This initiative, supported by the U.S. government, aims to significantly enhance Plantible Foods' ability to produce one of the world's most abundant proteins.

The funding includes $25M in debt financing from X-Caliber Rural Capital, part of the USDA, along with $10M in equity funding from RA Capital and existing investors like Piva Capital. With this latest round of funding, Plantible has raised a total of $92M to date.

X-Caliber Rural Capital specializes in financing rural business and economic development projects under the USDA’s OneRD Guarantee Loan Initiative. The funds will be utilized to construct up to 50 new greenhouses at Plantible’s 100-acre enclosed aquafarm facility near Eldorado, Texas, allowing the company to increase its production capacity fivefold, exceeding 100,000 tonnes of Rubisco protein from duckweed each year. This expansion will also help the company meet its existing customer demands and tap into new markets.

This capital infusion follows a significant milestone for the startup, which received a ‘no questions’ letter from the Food and Drug Administration six months prior, permitting it to sell its Rubi Protein ingredient to food manufacturers.

Duckweed, also known as lemna or water lentils, is a free-floating freshwater plant that has been consumed in Southeast Asia for centuries. Its popularity has surged recently due to its environmental and nutritional advantages. These plants do not require farmland or contribute to deforestation and boast a higher micronutrient content than many vegetables. Furthermore, they have a PDCAAS score of 1.0 (the highest possible) and grow rapidly, doubling in size every two to three days.

Rubisco, found in the leaves of all plants, can be cultivated globally, and many people unknowingly consume it. Plantible grows lemna on controlled aquafarms that recycle and refresh freshwater, achieving a water footprint ten times lower than that of soybeans. After harvesting, the plants are milled, filtered, and dried to extract pure protein from their leaves. This protein contains all nine essential amino acids and provides emulsifying, gelling, and fat-binding properties, making it an attractive alternative for manufacturers facing supply and price challenges with eggs.

The company produces Rubi Protein at its Ranchito plant in Texas, which opened last year with a capacity of 100 tonnes. Plantible’s technology utilizes a controlled crop cycle, minimizing exposure to seasonal volatility and extreme weather, and ensuring consistent harvests and income for rural communities.

In addition to its environmental benefits, duckweed protein offers superior output, with Plantible's ingredient achieving a 70% nutritional yield, significantly higher than soy (46%), pea (28%), and beef (27%).

“Plantible has translated breakthrough science into consistent, scalable production, and this expansion is the next proof point,” stated Maria Buitron, a principal at Piva Capital. “Reducing water consumption and expanding protein production is a holy grail for an industry that is facing consistent constraints on available, healthy protein alternatives.”

The startup’s Rubisco protein comes in two forms: one mimics the emulsification and binding benefits of methylcellulose for cleaner-label plant-based meat products, while the other offers structural integrity and moisture retention for egg- and gluten-free baked goods like tarts and cookies.

Additionally, Plantible has introduced Lemna Leaf Greens, a green powder rich in protein, fiber, and micronutrients, suitable for products like ready-to-mix beverages and supplements. The FDA letter allows the Rubisco ingredient to be used in food applications at levels up to 5%. Functional ingredient provider ICL Food Specialties has already incorporated Rubi Protein into their Rovitiras Binding Solution for meat and seafood alternatives.

“The customer response to Plantible’s industry-leading tech and superior products has been phenomenal,” remarked Kyle Teamey, managing partner of RA Capital Management’s planetary health team. “We’re excited to help Plantible rapidly scale its modular production facilities at this critical moment in the company’s growth.”

Anna West, president of X-Caliber Rural Capital, added: “Innovative companies often face financing challenges as they scale, even when their long-term potential is clear. USDA’s Business & Industry Loan Guarantee Program helps bridge that gap, and we’re proud to provide the maximum financing available under the program to support Plantible Foods’ continued growth and investment in rural America.”

Plantible’s funding achievement reflects a broader trend for Rubisco, which is gaining traction as an alternative amid shortages and price increases for whey and eggs. Fellow U.S. startup Fudi Protein has also secured early-stage funding to commercialize its alfalfa-based Rubisco protein, providing an alternative to egg whites and dairy.

Meanwhile, Bay Area chain Palmetto Superfoods has introduced a Blade Smoothie featuring the alfalfa-based Rubisco protein from Leaft Foods, which has recently gained investment from Japanese dairy major Lacto Japan to supply the ingredient to some of Japan’s largest food manufacturers, aiming to generate tens of millions of dollars in revenue within five years.