Turing Labs Raises $16.5M to Revolutionize CPG Formulation with AI

The Rise of Remote Lab Work and Turing Labs' $16.5 Million Funding

The shift to remote work has significantly impacted many industries, particularly those reliant on desk-based roles. Several tech companies have experienced substantial growth by catering to this evolving work landscape. Now, a new startup, Turing Labs, is addressing similar challenges, but specifically for professionals working within laboratory settings.

Securing Series A Funding

Turing Labs has recently secured $16.5 million in a Series A funding round. This investment is spearheaded by Insight Partners, with contributions from existing investors Moment Ventures and Y Combinator (where the company participated in the 2020 cohort). Additionally, Borge Hald, CEO and co-founder of Medallia, joined as a new individual investor.

The acquired capital will be strategically allocated to accelerate research and development (R&D), expand the engineering team, broaden operational scope, and strengthen the go-to-market strategy.

Accelerating Product Development with AI

Turing Labs’ platform is designed to streamline and expedite the product development process within laboratories. Currently, the company collaborates with businesses in the consumer packaged goods (CPG) sector.

Its technology is utilized to create novel formulations for products spanning home care, food and beverage, and cosmetics. The platform leverages AI to simulate various ingredient combinations, identifying a focused subset for technicians to physically assemble. Further investment will be directed towards enhancing the platform’s capabilities, including expanding into packaging and alternative ingredients for processed foods.

Expanding Beyond Formulation

“Our initial focus was on formulation, but we are now broadening our scope to encompass other areas like ingredients or packaging—essentially anything that can be digitally simulated or optimized,” explained Manmit Shrimali, CEO of Turing Labs, who co-founded the company alongside Ajith Govind. He highlighted a significant shift in the R&D landscape, noting a transition from 90% manual processes to 90% digital workflows.

The startup also recognizes a growing opportunity in emerging product categories, such as plant-based alternatives to traditional meat and dairy products, where AI can facilitate the development of entirely new food items.

Working with Major CPG Companies

Turing Labs currently partners with several prominent, globally recognized CPG companies, though their identities remain confidential. The company intends to expand its client base and deepen engagement with existing users.

The Critical Role of R&D Labs in CPG

R&D laboratories are integral to the CPG industry, serving as the birthplace of new products. These labs are where products are discovered, rigorously tested, and refined based on feedback from various departments—including customer insights, marketing, budgetary constraints, and manufacturing considerations—followed by further testing and iterative improvements.

One of Turing Labs’ major clients allocates approximately $400 million annually to testing alone.

Addressing Pressures on R&D Departments

Even prior to the COVID-19 pandemic, R&D departments faced increasing pressure. Budgets were being reduced while demands and variables to consider were simultaneously increasing. Maintaining timelines for new product launches—or product line extensions—remained crucial for sustaining consumer interest.

Furthermore, growing environmental and health concerns surrounding product ingredients necessitate simplification and improvement of mass-market product compositions. Simultaneously, smaller, direct-to-consumer brands are challenging larger competitors by accelerating time-to-market with offerings aligned with evolving consumer preferences. Navigating these formulation combinations, alongside other variables, is a resource-intensive undertaking.

The Impact of the Pandemic

The pandemic has further complicated matters, prompting companies to minimize time spent in physical environments, including laboratories.

AI as a Solution

Turing Labs aims to address these challenges through the application of AI. Similar to other complex computational applications, AI accelerates calculations beyond human capabilities. In this context, it’s applied to product development and reformulation, reducing steps and minimizing the workload for technicians.

This allows technicians to concentrate on innovative concepts, although the long-term potential for AI to fully automate the process remains a key area to observe.

Insight Partners' Perspective

“With rapidly changing consumer preferences, including ingredient inputs, as well as the emergence of competitive independent brands, CPG companies today are under pressure to develop new products faster and evolve their existing portfolio. Turing Labs allows users to automate the formulation process and predict outcomes, helping CPG companies bring innovative products to market faster,” stated Josh Fredberg, managing director at Insight Partners. “Turing Labs’ ability to systemize and speed up market discovery and product formulation across CPG organizations makes it a stand-out in the industry. We look forward to partnering with the team at Turing Labs as they continue to grow.”