PeelON raises US$1M seed round from GrowX Ventures to scale biodegradable packaging solutions

INDIA – Bio-tech startup PeelON has secured US$1 million in a seed funding round led by deep-tech investor GrowX Ventures, with participation from Boston Venture Group and Clean Energy Venture Group.

The fresh capital will fuel research and development, expand production in Visakhapatnam, and support recruitment in sales, R&D, and regulatory compliance across India and the United States.

Founded in 2020 by Taraka Ramji Moturu and Venkata Ravi Sankar Ummidi, PeelON develops plant-based films that extend the shelf life of fresh produce by up to three times.

Operating on a B2B model, the company partners with farmers, exporters, and retailers to reduce food spoilage while eliminating single-use plastics in fresh produce supply chains.

Its flagship products, PeelON-Fresh and PeelON-Retail+, are tailored for bulk shipments and retail packaging respectively.

The latter incorporates antimicrobial agents and ethylene scavengers to keep fruits and vegetables fresh for longer.

Currently, PeelON’s solutions are in use across crops such as cilantro, broccoli, leafy greens, rambutan, and bananas, with customers in Maharashtra and Andhra Pradesh, as well as in Texas, Florida, and California.

The company’s expansion roadmap includes scaling production in India and the US, extending its reach to exporters in Mexico and Southeast Asia, and introducing compostable retail packaging in North America.

It is also exploring a blockchain-enabled traceability platform to validate carbon savings and shelf-life improvements.

PeelON’s funding comes amid a surge of investor interest in sustainable packaging. In April 2024, India’s Phool.co raised US$8 million from Sixth Sense Ventures to scale its line of biodegradable floral-based packaging and biomaterials.

Similarly, US-based Apeel Sciences, which develops edible plant-based coatings for produce, has raised over US$700 million to date, with support from Temasek and Andreessen Horowitz.

Meanwhile, UK-based Notpla, known for its seaweed-derived packaging, secured £10 million in a Series A round to expand its portfolio of compostable packaging alternatives.

Industry analysts note that innovations like PeelON’s align with global efforts to tackle food waste and plastic pollution, two major sustainability challenges.

“As governments tighten regulations on single-use plastics, scalable biodegradable alternatives will become a cornerstone of the packaging industry,” said an industry expert.

With fresh capital and growing partnerships, PeelON aims to position itself as a leading player in compostable packaging, supporting both sustainability goals and food security across global markets.

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