Yiru Technology raises 100M yuan Series A as bio-leather orders hit €14M in Europe
What's the deal? Yiru Technology, a Chinese maker of bio-based leather, has raised more than 100 million yuan (about $14.7 million) in a Series A round. Erdos Group and Heda Financial Services co-led, with Chaosheng CapitalDealroom has a profile for this one. Try Dealroom → participating and China RenaissanceDealroom has a profile for this one. Try Dealroom →'s iKang acting as sole financial adviser.
What's the endgame? Founded in 2021, Yiru uses synthetic biology to produce bio-based resin through microbial fermentation, then processes it into leather. It says the material cuts carbon emissions by more than 80% and matches genuine leather on durability, breathability, and flexibility. Proceeds will fund commercial expansion, production capacity, and AI-driven product development.
Why now? Founder Su Rui told 36Kr in 2024 that the company's commercial inflection point might arrive "the following year." By the first quarter of 2026, Yiru's leather line had passed an annual capacity of 16 million square metres, with a second-phase plant under construction.
By the numbers: Overseas orders now make up roughly two-thirds of total business. Yiru's French subsidiary, SYNMETABIO, has accumulated orders approaching 100 million yuan, "almost all from luxury brands," Su said. Headcount grew from about 20 to nearly 70 in the past six months.
Where it's expanding: Yiru has set up SYNMETABIO in France as a European headquarters, linking channels across the UK, Germany, Italy, Turkey, and the Nordic region. Europe's demand for low-carbon materials and the EU's carbon border tax (CBAM) make it a priority market, where Yiru pitches cost and sustainability advantages.
What could go wrong? The sector has a difficult history. Overseas peers such as MycoWorks, Modern Meadow, and Ecovative raised backing from top investors and luxury groups, but many stalled — the material could be made, yet was too expensive to scale. Yiru argues cost is now its edge: it prices most products at 80–150 yuan per metre, roughly half the cost of genuine leather in Europe.
The signal: The industry's benchmark has shifted from whether bio-based leather can be made to whether it can be produced cheaply and at scale. With industrial capital such as Erdos Group leading a nine-figure round, Yiru — which plans to treat 2026 as its first year preparing for a listing — offers an early sign that Chinese synthetic biology is moving from lab narrative to industrialisation.
Image credit: makeitkenya
