A water treatment firm has raised £700,0000 in a new funding round to support its growth.
I-Phyc has devised an eco-friendly water treatment which aims to clean up polluted rivers and seas.
It has now secured new funding from the Midlands Engine Investment Fund, Trowlock Strategic Planning, Namier Capital and private investors to support the rollout of its technology to more water plants across the country.
I-Phyc's chemical free system uses microalgae and other technology to remove phosphorus, ammonia and contaminants while locking away carbon and creating sustainable by-products such as biomass.
The latest investment, which brings the total raised by the company to date to over £2 million, comes amid growing pressure for water companies to reduce pollution levels and follows the introduction of stricter limits on phosphorus and other contaminants.
It employs 15 staff at its head office in Birmingham and at a lab in Bristol and is already in operation at a number of sites.
Executive chairman Karl Wills said: "Only 14 per cent of UK rivers meet the minimum standard for water quality and, although new regulations impose a ten-fold reduction in phosphorus levels, many sewage plants cannot achieve this, even if they vastly increase their use of chemicals.
"I-Phyc's system offers a nature-based, carbon capturing solution that will help clean up our coasts and rivers.
"Our existing investors have been supporting us since 2019 and this further round is a great endorsement of their faith in the technology."
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The Midlands Engine Investment Fund capital came from its ‘Proof of Concept & Early Stage' pot, which is managed by Henley-based Mercia Asset Management.
Investment manager Kiran Mehta added: "We initially invested into I-Phyc in 2019 when the company was looking for support to build its initial test product.
"Roll forward less than three years and I-Phyc has now completed the product development, successfully sold and installed fully operational sites with a number of water companies, and has a healthy pipeline which validates the strong market need for this product.
"I look forward to continuing our close and collaborative relationship as I-Phyc enter the next stage of their growth journey, including internationalisation."
