Dartmouth, Nova Scotia (NS)-based biotechnology company Mara Renewables has raised $9.1 million USD ($12.5 million CAD) in additional capital from Chicago-based firm S2G Investments as it looks to get its algae-based omega-3 oil into global markets.
“The real journey of Mara right now is commercializing what they have into the marketplace.”
Harry Boot
The all-equity financing acts as an extension to the $39.5 million CAD it raised in 2022 to fund growth and research efforts for its algae-based products, the company said. At the time, Mara told BetaKit that it planned to complete a second close from sustainability-focused firm Clear Creek Investments. CEO Harry Boot confirmed that Clear Creek is an investor in Mara, but provided no further details on the second close.
Founded in 2012 by Clearwater Seafoods co-founder and billionaire John Risley, Mara uses algae to make oils rich in docosahexaenoic acid (DHA), an omega-3 fatty acid that is abundant in fish and enriched eggs, but difficult to consume in adequate amounts for people who don’t eat those foods.
The substance has wide commercial and cosmetic applications, and can act as a standalone nutritional supplement or as a fortifier in a variety of foods, including infant formula. Studies have shown that DHA plays a key role in brain development, and deficiencies are associated with cognitive decline and other adverse health effects.
Boot told BetaKit in an interview that Mara plans to use the funding for commercializing, growing its team, and expanding its footprint into global markets like Asia, the Middle East, and North Africa. The company now has presences in Singapore, the United Kingdom (UK), Saudi Arabia, and Latin America.
“The real journey of Mara right now is commercializing what they have into the marketplace,” said Boot, who joined the company as CEO in November 2023.
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He added that Mara has sold its algae-based DHA products to clients such as global food giant Nestlé, British retailer Marks & Spencer, and supplement maker Ritual.
Mara has now scaled its algal oil offerings, which now function as subsidiary brands, through two acquisitions during Boot’s tenure. Algarithm focuses on plant-based omega-3 oils and powders for dietary supplements, while Humanitiv Limited is a joint venture between Mara Renewables and UK-based Devenish Nutrition that makes DHA-enriched meat and eggs.
Targeting underserved markets is a priority for Mara, Boot claimed, particularly for young children experiencing malnutrition. He said the company is working with the Indonesian government to incorporate DHA supplements into food for a $28-billion USD (approximately $39-billion CAD) free meal program for schoolchildren and pregnant women.
Boot said Mara reached out to S2G Investments due to its track record on supporting sustainability-forward investments in the food, ocean, and energy spaces. Previously known as S2G Ventures, the Chicago-based multi-stage firm has backed brands such as Beyond Meat and Sweetgreen.
Mara’s focus on growth comes as Canadian AgTech and foodtech firms have struggled to fund their scaling efforts, according to an industry report from the Canadian Food Innovation Network. Public grants account for nearly one-third of all foodtech investment rounds in Canada, the report says, compared to five percent in the UK and eight percent in the United States.
Mara is not planning to go public within the next few years as it pursues global commercialization, Boot said. He said its next funding moves will depend on the needs of the company to ensure sustainable growth.
“That’s the great thing about these investors as well,” he said. “They’re really thinking longer-term.”
Feature image courtesy Mara Renewables.