India’s Dharaksha Ecosolutions secures US$2.95M for eco-friendly packaging solutions

INDIA – Dharaksha Ecosolutions, an Indian biotech startup focused on sustainable packaging, has raised Rs248 million (US$2.95 million) in a seed funding round led by Avaana Capital.

Other notable investors, including Shark Tank India, Vinners Capital, India Angels, and Soonicorn, also participated in the round.

Dharaksha Ecosolutions plans to utilize the funding to boost production capacity, strengthen research and development, and expand its market presence, according to a press release from the company.

Founded by Anand Bodh and Arpit Dhupar, the startup is dedicated to creating eco-friendly alternatives to petroleum-based products using agricultural waste.

The company’s flagship innovation is mycelium-based packaging materials, which are biodegradable and align with the growing global demand for sustainable solutions.

To date, Dharaksha has repurposed 7,000 tonnes of agricultural waste into eco-friendly packaging products.

In addition to packaging, Dharaksha is pioneering a mushroom-based alternative to medium-density fibreboard (MDF), commonly used in the furniture and construction sectors.

Their innovative MDF boards are produced using a resin extracted from mushrooms, providing a safer and more sustainable alternative to the formaldehyde-based resins typically found in traditional MDF, which can release harmful carcinogenic fumes.

Dharaksha is also working on developing biodegradable, waterproof plastic film alternatives using mushroom extracts.

Both the MDF boards and plastic films are currently in the lab testing phase, with plans for third-party validation and a market launch by October next year.

Prior to this seed funding round, Dharaksha raised US$522,000, led by LetsVenture and other investors.

Co-founder and CEO Arpit Dhupar expressed his vision for the company’s future, “At Dharaksha, our mission is to offer sustainable alternatives to non-biodegradable materials, completing a circular ecosystem by returning nutrients to the soil through composting.

“While packaging solutions are our first product, this funding will enable us to develop more innovative solutions in the near future.”

Dharaksha Ecosolutions has already made significant strides, replacing thermocol packaging with bio-fabricated materials.

According to Dhupar, their process generates no pollution or toxic residues like black liquor, commonly found in industrial production processes.

Even rejected products are reused as raw materials, further supporting the company’s commitment to sustainability.

Additionally, Dharaksha has developed a nutrient medium called Somras, designed to accelerate the growth of fungi, further enhancing their production efficiency.

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