Funding Alert

Bio-tech Startup PeelON Raises $1 Mn Seed Round Led by growX Ventures

• ByStartupStory     |    August 22, 2025

Sustainable packaging innovator PeelON has secured $1 million in seed funding led by growX Ventures, with participation from Boston Venture Group and Clean Energy Venture Group. The funding will be used to scale R&D, boost production in Visakhapatnam, expand its sales presence in India and the USA, hire across key functions, and launch marketing campaigns.

Founded in 2020 by Taraka Ramji Moturu and Venkata Ravi Sankar Ummidi, PeelON develops biodegradable and compostable plant-based films that extend the shelf life of fresh produce by up to 3x. Built on a B2B model, the startup works with farmers, exporters, and retailers to reduce spoilage and eliminate single-use plastics across the fresh produce supply chain.

PeelON currently offers two flagship products aimed at large and small-scale distribution:

PeelON-Fresh: liners for bulk shipments.

PeelON-Retail+: retail-ready bags infused with natural antimicrobial agents and ethylene scavengers to curb spoilage and maintain freshness.

These solutions are already in commercial use across crops like cilantro, broccoli, leafy greens, rambutan, and bananas, with customers in Maharashtra and Andhra Pradesh in India, and Texas, Florida, and California in the US. The company’s technology is also being validated through collaborations with universities and compostable materials labs in India and the US.

Looking ahead, PeelON aims to expand production capacity in India and overseas, establish itself as the preferred packaging partner for sustainable exporters in India, Mexico, and Southeast Asia, and launch retail-ready compostable packaging formats in the US and Canadian markets. The startup also plans to explore a blockchain-enabled traceability platform to validate carbon footprint and shelf-life for global supply chains.

Commenting on the milestone, PeelON’s co-founders said the fresh funding would accelerate their mission to “redefine fresh produce packaging with sustainable, science-driven solutions.”

With the global push toward reducing plastic waste and ensuring food security, PeelON’s innovation sits at the intersection of agri-tech, climate-tech, and food sustainability, making it a startup to watch in the evolving green packaging industry.

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