PeelON, a biotech startup founded in 2020, has successfully raised $1 million in seed funding to further its mission of developing biodegradable and compostable packaging solutions for the fresh produce industry. The investment round was led by GrowX Ventures, with participation from Boston Venture Group, Clean Energy Venture Group, and Climate Angels.
The newly acquired capital will be strategically allocated to bolster PeelON's research and development facilities in Visakhapatnam, India. Additionally, the funds will support the expansion of its sales and regulatory compliance teams in both the United States and India. Targeted marketing campaigns for key produce items, including bananas and grapes, are also planned.
PeelON's innovative packaging technology, exemplified by its product Banapeel, is designed to address critical challenges in the fresh produce supply chain. Banapeel actively manages ethylene levels, a key hormone in fruit ripening, thereby extending the freshness of produce during transit. This technology aims to reduce spoilage, improve product quality, and help exporters comply with increasingly stringent sustainability regulations.
The company operates on a business-to-business model, fostering collaboration with farmers, exporters, and retailers to transition away from single-use plastics. PeelON's sustainable packaging is currently used for a variety of crops, including cilantro, broccoli, leafy greens, rambutan, and bananas, with clients in India and the United States. The startup is also exploring collaborations with universities and laboratories to broaden the application of its packaging solutions.
Further enhancing its commitment to sustainability and transparency, PeelON is piloting a blockchain-enabled traceability platform. This technology is intended to provide robust tracking for carbon footprint verification and shelf-life validation, offering greater insight into the product's journey.
The global produce packaging market is substantial, estimated at $172 billion, with the biodegradable packaging sector projected to grow significantly. PeelON's innovative approach positions it as a key player in transforming the packaging industry by delivering solutions that enhance product longevity while reducing environmental impact.
