Bio-tech startup PeelON raises $1 Mn in seed round led by growX Ventures

PeelON, a bio-tech startup specialising in biodegradable, compostable packaging for fresh produce, has raised $1 million in a seed funding round led by deep-tech-focused VC firm growX Ventures along with participation from Boston Venture Group, and Clean Energy Venture Group.

The proceeds will be deployed to expand R&D and production facilities in Visakhapatnam, hire across sales (USA and India), R&D, and regulatory compliance and launch marketing campaigns, PeelON said in a press release.

Co-founded in 2020 by Taraka Ramji Moturu and Venkata Ravi Sankar Ummidi, PeelON develops plant-based films that extend the shelf life of fruits and vegetables by up to 3x. It operates on a B2B model, working with farmers, exporters, and retailers to eliminate single-use plastics at every stage of the fresh produce supply chain.

According to PeelON, it offers two flagship products, engineered to address the respective pain points of bulk shipments and retail products. While its first product PeelON-Fresh offers liners for bulk shipments, its second product PeelON-Retail+ offers retail-ready bags with natural antimicrobial agents and ethylene scavengers to maintain freshness and reduce food spoilage.

PeelON’s solutions are being commercially deployed across crops such as cilantro, broccoli, leafy greens, rambutan, and banana, with clients in Maharashtra and Andhra Pradesh in India, as well as in Texas, Florida, and California in the US. The company also has active collaborations with universities and compostable materials labs in the USA and India, to expand its solutions to other items. 

The company plans to expand production capacity in India and the US, become the go-to packaging solution for sustainable exporters in India, Mexico, and Southeast Asia, and launch retail compostable packaging formats in the US and Canadian markets. It also aims to pilot a blockchain-enabled traceability platform for carbon and shelf-life validation.