Biotech startup PeelOn has raised $1 million in its maiden funding round led by deeptech-focussed venture capital (VC) firm GrowX Ventures. The company is currently valued at $7.9 million.
The round also saw participation from Boston Venture Group, Clean Energy Venture Group, and Climate Angels.
The startup plans to use the funds to strengthen its research and development (R&D) and production facilities in Visakhapatnam in Andhra Pradesh, expand its sales and regulatory teams in the US and India, launch marketing campaigns for leafy greens, bananas, and grapes, and work on certifications and regulatory filings across global markets.
“We are primarily working in the US-Mexico corridor and the Indian market, which are our two major markets. We are currently moving from the pilot stage to commercial orders, with about 60% of our business coming from the US-Mexico corridor and 40% from India,” founder and chief executive Taraka Ramji Moturu told ET.
Founded in 2022 by Moturu and Venkata Ravi Sankar Ummidi, the company develops compostable packaging solutions that can extend the shelf life of fruits and vegetables by up to three times. Operating on a B2B model, it partners with farmers, exporters, and retailers to reduce reliance on single-use plastics across the fresh produce supply chain.
The US-based company is setting up its own manufacturing facility with a capacity of 30 tonnes per month. PeelOn’s solutions are already in commercial use for crops including cilantro, broccoli, leafy greens, rambutan, and bananas, and the firm holds four patents for its technology, Moturu said.
“We use plant-based additives that are encapsulated and integrated into the packaging itself, making it easy to plug and play into the supply chain. Once the produce is packed, the additives are released, helping delay ripening, maintain freshness, and prevent bacterial or fungal infections, which are common in the produce industry,” said Moturu.
The company is also focussing its R&D efforts on retail-facing segments with high plastic usage, such as milk pouches. According to Moturu, the company is targeting an annual run rate (ARR) of $1 million by the next financial year.
“Specifically, in produce, just considering exporters and importers from the US-Mexico corridor, the market size is over $1 billion. In India, it includes both domestic and export markets, which have been growing steadily, with the country pushing exports significantly,” he added.
Commenting on the investment, Manish Gupta, general partner at GrowX Ventures, said, “PeelOn is tackling one of the most urgent, overlooked challenges in global fresh produce supply chains—plastic waste and perishability. What excites us is not just their novel material science, but the clear commercial validation from exporters across India and the US.”
The round also saw participation from Boston Venture Group, Clean Energy Venture Group, and Climate Angels.
The startup plans to use the funds to strengthen its research and development (R&D) and production facilities in Visakhapatnam in Andhra Pradesh, expand its sales and regulatory teams in the US and India, launch marketing campaigns for leafy greens, bananas, and grapes, and work on certifications and regulatory filings across global markets.
“We are primarily working in the US-Mexico corridor and the Indian market, which are our two major markets. We are currently moving from the pilot stage to commercial orders, with about 60% of our business coming from the US-Mexico corridor and 40% from India,” founder and chief executive Taraka Ramji Moturu told ET.
Founded in 2022 by Moturu and Venkata Ravi Sankar Ummidi, the company develops compostable packaging solutions that can extend the shelf life of fruits and vegetables by up to three times. Operating on a B2B model, it partners with farmers, exporters, and retailers to reduce reliance on single-use plastics across the fresh produce supply chain.
The US-based company is setting up its own manufacturing facility with a capacity of 30 tonnes per month. PeelOn’s solutions are already in commercial use for crops including cilantro, broccoli, leafy greens, rambutan, and bananas, and the firm holds four patents for its technology, Moturu said.
“We use plant-based additives that are encapsulated and integrated into the packaging itself, making it easy to plug and play into the supply chain. Once the produce is packed, the additives are released, helping delay ripening, maintain freshness, and prevent bacterial or fungal infections, which are common in the produce industry,” said Moturu.
The company is also focussing its R&D efforts on retail-facing segments with high plastic usage, such as milk pouches. According to Moturu, the company is targeting an annual run rate (ARR) of $1 million by the next financial year.
“Specifically, in produce, just considering exporters and importers from the US-Mexico corridor, the market size is over $1 billion. In India, it includes both domestic and export markets, which have been growing steadily, with the country pushing exports significantly,” he added.
Commenting on the investment, Manish Gupta, general partner at GrowX Ventures, said, “PeelOn is tackling one of the most urgent, overlooked challenges in global fresh produce supply chains—plastic waste and perishability. What excites us is not just their novel material science, but the clear commercial validation from exporters across India and the US.”
