Biotech startup PeelON, which develops biodegradable and compostable packaging for fresh produce, has raised $1 million in its maiden seed funding round.
The round was led by deep-tech VC firm growX Ventures, with participation from Boston Venture Group, Clean Energy Venture Group, and Climate Angels, placing the company’s valuation at $7.9 million.
The startup said the fresh funds will be used to expand R&D and production facilities in Visakhapatnam, build sales and regulatory teams in India and the US, and launch marketing campaigns for leafy greens, bananas, and grapes.
PeelON also plans to work on global certifications and regulatory filings to scale faster.
Founded in 2020 by Taraka Ramji Moturu and Venkata Ravi Sankar Ummidi, PeelON is pioneering plant-based packaging films that can keep fruits and vegetables fresh up to three times longer. Through its B2B partnerships with farmers, exporters, and retailers, the company aims to curb reliance on single-use plastics across the fresh produce ecosystem.
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The company offers two flagship products, PeelON-Fresh, which provides liners for bulk shipments, and PeelON-Retail+, retail-ready bags infused with antimicrobial agents and ethylene scavengers.
Its solutions are already deployed across crops such as cilantro, broccoli, leafy greens, rambutan, and bananas, with clients in India (Maharashtra, Andhra Pradesh) and the US (Texas, Florida, California).
PeelON has filed four patents for its technology and is setting up a 30-tonne/month manufacturing facility. About 60% of its current business comes from the US-Mexico corridor and 40% from India.
The startup is also exploring applications in milk pouches and piloting a blockchain-enabled traceability platform for carbon and shelf-life validation.
