Mara Renewables Secures $12.5 Million to Launch Fish-Free Omega-3 Globally

Mara Renewables, a biotechnology company based in Dartmouth, Nova Scotia, has successfully raised an additional $9.1 million USD (approximately $12.5 million CAD) in funding from Chicago’s S2G Investments. This investment aims to facilitate the company’s expansion of its algae-based omega-3 oil into global markets.

The latest funding round is part of a broader financial strategy, building on the $39.5 million CAD raised in 2022 to support research and growth initiatives for its innovative algae-derived products. CEO Harry Boot confirmed that S2G Investments, known for supporting sustainable ventures in food and energy, will help Mara elevate its commercial presence. Boot noted, “The real journey of Mara right now is commercializing what they have into the marketplace.”

Founded in 2012 by billionaire and co-founder of Clearwater Seafoods, John Risley, Mara Renewables specializes in producing oils rich in docosahexaenoic acid (DHA). This omega-3 fatty acid is typically found in fish and enriched eggs, making it challenging for individuals who do not consume these foods to obtain sufficient amounts. DHA has been linked to cognitive development, and deficiencies can lead to various health issues.

Global Expansion Plans

With the new funding, Mara plans to focus on commercializing its products and expanding its reach into markets across Asia, the Middle East, and North Africa. The company already has established operations in Singapore, the United Kingdom, Saudi Arabia, and Latin America. Boot emphasized the significance of targeting underserved markets, particularly for young children suffering from malnutrition.

Mara is currently collaborating with the Indonesian government to integrate DHA supplements into a $28 billion USD free meal program aimed at schoolchildren and pregnant women. Boot expressed confidence in this initiative, stating, “We are working to ensure that the children in Indonesia receive the nutritional support they need.”

The company’s algae-based DHA products have attracted notable clients, including global food giant Nestlé, British retailer Marks & Spencer, and supplement manufacturer Ritual. Mara has scaled its offerings through two acquisitions during Boot’s tenure, including Algarithm, which focuses on plant-based omega-3 oils, and Humanitiv Limited, a joint venture with UK-based Devenish Nutrition that produces DHA-enriched meat and eggs.

Challenges in the Canadian Foodtech Sector

Mara’s push for growth occurs amid challenges faced by Canadian AgTech and foodtech companies in securing funding. According to a report by the Canadian Food Innovation Network, public grants constitute nearly one-third of all foodtech investment rounds in Canada, a stark contrast to just five percent in the UK and eight percent in the United States.

Despite these challenges, Boot clarified that Mara has no immediate plans to pursue an initial public offering (IPO) as it focuses on global commercialization. He indicated that future funding decisions would hinge on the company’s growth requirements, stating, “That’s the great thing about these investors as well. They’re really thinking longer-term.”

As Mara Renewables moves forward with its mission, its commitment to sustainability and innovation in the food sector continues to gain traction, potentially transforming dietary options for consumers worldwide.