Perfect Day, a trailblazer in precision fermentation technology, is entering a new chapter as its founders step back from their decade-long leadership tenure. This transition aligns with the company completing a substantial pre-series E funding round, amounting to up to $90 million, and appointing TM Narayan, the current president, as the interim CEO.
The Berkeley-based innovator, known for creating whey protein through fermentation, is also hinting at an imminent partnership with a leading Consumer Packaged Goods (CPG) company. This collaboration is poised to leverage Perfect Day’s fermentation-derived whey protein, alongside the announcement of new molecular developments from its nth bio division.
Narayan, who joined the company in September 2021, will be supported by Aftab Mathur of Temasek and Patrick Zhang of Horizons Ventures as newly-appointed co-chairs of the board. These appointments come at a crucial time as Perfect Day aims to demonstrate its value to investors who have contributed almost $840 million to the company’s growth.
With the search for a permanent CEO underway, Narayan, who has significantly contributed to Perfect Day’s operations over the past year, is considered a prime candidate for the position. His potential appointment is seen as a continuation of the company’s strategic direction towards profitability.
The pre-series E funding was split into two phases, with the initial part fully secured by existing investors. Perfect Day is in the process of securing additional funds from new investors to complete this round.
Originally conceived as ‘Muufri’ by founders Ryan Pandya and Perumal Gandhi in 2014, Perfect Day sought to disrupt the dairy industry with animal-free dairy milk. The company eventually pivoted to a B2B model, supplying its innovative whey protein to the broader food industry. Despite this focus, Perfect Day ventured into consumer brands with The Urgent Company, creating products under Brave Robot, Modern Kitchen, and California Performance Co brands, and later acquiring the Coolhaus ice cream brand.
In a strategic shift, Perfect Day sold its consumer brands to Superlatus, allowing the company to concentrate on its core B2B operations and deepen partnerships with large CPG companies. This move was part of a broader effort to streamline the business and focus on sustainable growth.
Despite mixed success with early product launches by multinational partners, Perfect Day remains optimistic about the future of dairy produced via microbial fermentation. The company is transitioning from an “animal-free” messaging to emphasize the sustainability and carbon footprint reduction potential of its fermentation-derived whey protein.
As the precision fermentation industry evolves, Perfect Day is at the forefront, producing whey protein at previously unthinkable costs and exploring manufacturing expansion options to meet growing demand.
The concept of “animal-free” dairy, while not formally defined, represents a shift towards more sustainable and ethical production methods without compromising the nutritional and functional benefits of traditional dairy. Perfect Day’s advancements in this area position the company as a leader in a rapidly growing field that includes several startups and research initiatives worldwide.
As Perfect Day navigates this leadership transition and funding milestone, its focus on innovation, sustainability, and strategic partnerships signals a promising future for the company and the broader precision fermentation industry.
