Great Wrap secures US$24M series A funding to scale up operations in Australia
AUSTRALIA – Melbourne-based material sciences start-up Great Wrap has landed international investment to innovate materials and scale up production of its upcycled compostable stretch wrap for home and industrial use.
The cash injection will enable co-founders Jordy and Julia Kay to commercialize the company’s full range of compostable wraps – Cling Wrap, Catering Wrap and Pallet Wrap.
The company first commercialized its wrap in 2020, following a successful pilot trial of a stretch wrap made from potato processing waste with the performance properties of conventional plastic stretch wrap, but importantly, that breaks down to carbon and water.
Part of the equity funding – US$ 11 million – comes from Darren Thomas (MD of Thomas Food International), W23 (Woolworths’ venture capital division), Grill’d Innovation Fund, Giant Leap, Small Giants, Thai Wah Ventures, GroundSwell, Trail Mix Ventures and Springbank Collective, plus a raft of other impact investors from Australia, the USA and Singapore.
Rabobank’s asset financing arm, DLL Group, has amplified the investment with $13 million of non-dilutive capital.
The first step for Great Wrap has been to expand into a new 12,000 sqm facility in Tullamarine, with the capacity to manufacture 30,000 tonnes of compostable stretch wrap by the end of 2023, which will make the company Australia’s largest stretch wrap manufacturer.
The move took place in January 2022, with the asset financing established at the same time which allowed the company to have the machinery purchased, shipped and commissioned in advance of the equity raise.
The new factory marks phase one in the shift to total vertical integration, enabling Great Wrap to process local waste from one of Australia’s largest potato processors.
Phase two will see the commissioning of the first-of-its-kind biorefinery on site, to produce the biopolymer PHA from which the wrap is made.
It’s expected to be completed in 2023 and has the capacity to upcycle nearly 50,000 tonnes of local potato waste annually.
According to Jordy Kay, the expansion and plant upgrade will see 100 jobs created in Victoria alone.
“The equity raise allows Great Wrap to grow our products, team and launch our products in new regions as well as continue the research and commercialization of new technology and biorefinery,” said Jordy.
“The biorefinery setup will also be a huge step forward for our state – we’re excited to be bringing biotechnology and advanced manufacturing to the forefront.”
Julia Kay, recently named Young Victorian of the Year, said, “The world’s largest companies are making plastic reduction commitments to end plastic waste, but unfortunately we will not recycle our way out of this mess.
Looking at future expansion plans, Julia and Jordy said, “We are always open to funding from impact and vision-aligned investors in driving growth into international markets to ensure that we as a business can positively impact the environment in a meaningful way.”
While targeting Australian waste issues for now, Great Wrap also has its eyes set on international expansion next month.
The company has plans to sell its wrap in the US in 2022 and Europe in 2023, with a focus on markets that have world-leading impact-focused consumers, legislation and strong corporate ESG mandates.
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