PeelON Raises $1M to Scale Biodegradable Packaging

Visakhapatnam-based biotech startup PeelON has raised US$1 million in seed funding led by growX ventures, with participation from Boston Venture Group, Clean Energy Venture Group, and Climate Angels.

The company develops biodegradable and compostable packaging films designed to extend the shelf life of fresh produce, offering a sustainable alternative to single-use plastics. PeelON currently works with farmers, exporters, and retailers in India and the US, with deployments across Maharashtra, Andhra Pradesh, Texas, Florida, and California. Its packaging solutions are already being used for crops such as cilantro, broccoli, leafy greens, rambutan, and banana.

Key Highlights

• PeelON raises $1M seed funding led by growX ventures
• Plant-based films extend produce shelf life by up to 3x
• Plans expansion in India, US, Mexico, and Southeast Asia

The startup plans to use the fresh capital to expand R&D and production in Visakhapatnam, hire talent across India and the US, and secure certifications and regulatory approvals. PeelON also aims to expand to Mexico and Southeast Asia in the coming years.

The company’s growth aligns with a broader regulatory shift against single-use plastics. For instance, California will mandate compostable or recycled paper bags by 2025, while Oregon, Delaware, and Minnesota are enacting bans on foam and PFAS-based packaging. This global push creates strong adoption opportunities for PeelON’s technology.

Also Read: Biotech Startup Automera Raises $16 Million in Seed Funding

Positioned in the $172 billion fresh produce packaging market, PeelON claims its plant-based films can extend shelf life up to 3x, helping exporters maintain product quality while complying with new regulations. The company projects $5 million in revenue by FY26, in line with the broader biodegradable packaging market, which is expected to nearly double from $238.6 million in 2025 to $460.4 million by 2035 (6.8 percent CAGR).