Yiru Technology Secures Over 100 Million Yuan in Series A Funding Led by Erdos Group and Heda Financial Services
Yiru Technology, a biomaterial company specializing in bio-based leather, has successfully closed a Series A funding round exceeding 100 million yuan. The investment was co-led by the prominent Erdos Group and Heda Financial Services, with Chaosheng Capital participating as a follower. Yi Kai Capital served as the exclusive financial advisor for the transaction. The newly acquired capital will be strategically allocated to accelerate the company's commercial expansion and enhance its production capacity. Furthermore, Yiru Technology plans to leverage AI technologies to drive innovation and product development in its bio-based leather offerings.
Founded in 2021, Yiru Technology utilizes synthetic biology to produce next-generation bio-based materials, with bio-based leather as a flagship product. Their process involves direct microbial fermentation to create bio-based resin raw materials, which are then processed into finished leather. This method reportedly reduces carbon emissions by over 80% and can achieve production costs lower than traditional oil-based PU products, while matching the physical properties of genuine leather, such as wear resistance, breathability, and flexibility. This positions Yiru to transition high-performance materials for consumer goods from petroleum-based to bio-based origins.
Following a pre-A round of tens of millions of yuan in 2024, Yiru Technology is now experiencing significant global commercial traction. By the first quarter of 2026, its leather production lines are projected to reach an annual capacity of 16 million square meters. The company has already secured nearly 100 million yuan in overseas orders this year, marking the formal commencement of its global expansion. Yiru's bio-based leather is positioned to compete with traditional leather, offering a more sustainable and potentially cost-effective alternative. The company's product strategy includes different lines like Mulkol-3 for artificial leather replacement and Mulkol-5 for premium genuine leather substitution, alongside a high-end brand, HORA, for luxury clients. Yiru is also expanding into broader high-polymer bio-based materials, aiming to become a comprehensive innovation platform.
Yiru Technology's substantial Series A funding signifies a critical shift in the biomaterials sector, moving beyond the 'environmental narrative' towards tangible commercial viability and scalable production. The company's focus on cost reduction, achieving prices below genuine leather while meeting performance benchmarks, addresses the historical bottleneck that plagued earlier biomaterial ventures. The strategic integration of AI in R&D and production processes suggests a commitment to efficiency and rapid iteration, crucial for navigating the competitive landscape. The company's global expansion, particularly into the European market with its stringent sustainability demands and carbon regulations, presents both significant opportunities and challenges. Yiru's success hinges on its ability to consistently deliver on cost, quality, and volume, thereby establishing a new benchmark for sustainable materials in consumer goods and potentially reshaping supply chains across industries.
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