Norwich based Colorifix secures $18m strategic investment led by Inter IKEA Group to fuel global commercial expansion

Colorifix, the biotech company based at Norwich Research Park that is transforming textile dyeing with the world’s first entirely biological process without the use of petrochemicals, has successfully reached a first close of a series B2 round of $18m to support the transition from pilot production to full-scale commercial manufacturing across global markets.

The round is led by Inter IKEA Group, with continued support from H&M Group Ventures, Sagana and Regeneration.VC, as well as new participation from Goldwin Play Earth Fund, Ljungstrom family office and Youngone CVC.

Since its last funding round in 2022, Colorifix has made significant progress in deploying its sustainable dyeing technology across the globe. The company now operates in Europe and Latin America, with licenses also granted for customer onboarding in India and Sri Lanka, underlining a transition from small-scale industrial deployments to large volume commercial capacity. The main customer focus continues to be the fashion industry, with additional agreements in place for partnerships in the cosmetics and homewares segments.

“This investment marks a critical milestone as we shift from proving our technology to delivering it at industrial scale,” said Orr Yarkoni, CEO of Colorifix. “With Inter IKEA Group joining as lead investor and continued backing from H&M, we are uniquely positioned to accelerate adoption of our biology-based dyeing across global supply chains, eliminating the need for petrochemicals in dye production and drastically reducing water and electricity usage in the dyeing process itself.”

The new funding will support the company’s:

• Expansion of production capacity across Europe and Asia
• Deepening commercial engagements with textile manufacturers and brands
• Further development of colours with Colorifix’s proprietary microorganisms and bio-processes

Colorifix’s technology replaces the traditional need for petrochemicals in dye manufacturing with a biological process – fermentation – enabling significant reductions in environmental impact. It is the only industrial dyeing method that fully uses engineered microorganisms to produce and deposit colour directly onto fabric, requiring no harsh chemicals and significantly less water and energy.

“Colorifix is addressing one of the toughest sustainability challenges in textiles,” said Linn Clabburn from Innovation Ventures at Inter IKEA Group (ex-New Anglia LEP). “Their progress in scaling this technology and entering new markets aligns well with our ambitions to improve sustainability in the value chain.”

Colorifix now operates across multiple locations, including its headquarters at Norwich Research Park, production of bioreactors and a demo site in Portugal, as well as an office in London. The company has grown from pioneering lab-based proof-of-concepts to implementations with global manufacturers.

Yarkoni concluded, “Over the last few years, we have gone from grammes to tonnes of fabric per week. We are very excited for the next phase of growth, and with partners strongly committed to sustainability such as Inter IKEA Group and H&M, we are sure to make a difference!”

Roz Bird, CEO of Anglia Innovation Partnership, the campus management organisation at Norwich Research Park said, “This is really fantastic news for Colorifix and we are proud to support them at Norwich Research Park. They have grown from a small ‘spin-in’ from Cambridge University to a high-growth company working in the global fashion industry, helping it to transition away from the reliance on chemicals, which create pollution and use a lot of water, to instead, using biology to make colour and dye fabric.

“Access to our specialist skills pool, of microbiologists and technology platforms such as the BBSRC-funded Earlham Institute Biofoundry have been essential to Colorifix’s success here at Norwich Research Park.

“Colorifix is a great role model for our newest start-up businesses. Its ability to attract investors to fund its development, is a huge confidence boost for everyone here.”