Biotech startup PeelOn raises $1 million in funding led by GrowX Ventures, others

Biotech startup PeelOn has raised $1 million in a maiden funding round led by deeptech-focused venture capital firm GrowX Ventures, with participation from Boston Venture Group, Clean Energy Venture Group, and Climate Angels. The round values the startup at $7.9 million.

Advertisment

The proceeds will be used to expand research and development and production facilities in Visakhapatnam, Andhra Pradesh; strengthen sales and regulatory teams in the United States and India; and launch marketing campaigns for key crops such as leafy greens, bananas, and grapes. The startup is also working on global certifications and regulatory filings.

PeelOn, founded in 2020 by Taraka Ramji Moturu and Venkata Ravi Sankar Ummidi, develops biodegradable, compostable films that can extend the shelf life of fruits and vegetables by up to three times. Its plant-based packaging incorporates natural additives that delay ripening, preserve freshness, and prevent bacterial or fungal infections.

Operating on a business-to-business model, the startup partners with farmers, exporters, and retailers to reduce reliance on single-use plastics in the fresh produce supply chain.

The startup claims that it currently derives about 60% of its business from the US-Mexico corridor and 40% from India, where its solutions are commercially deployed for cilantro, broccoli, leafy greens, rambutan, and bananas. PeelOn has filed four patents for its technology and is building a manufacturing facility with a capacity of 30 tonnes per month.

Its two flagship products include PeelOn-Fresh, which provides liners for bulk shipments, and PeelOn-Retail+, which offers retail-ready bags infused with antimicrobial agents and ethylene scavengers. The startup is also piloting applications in high plastic-use categories such as milk pouches and exploring blockchain-enabled traceability for carbon and shelf-life validation.

PeelOn is targeting an annual run rate 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 are growing steadily,” Moturu said.

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.”