PeelON, a biotech startup focused on biodegradable and compostable packaging for fresh produce, has secured $1 million in a seed funding round. The round was driven by DeepTech-focused VC, growX ventures, with involvement from Boston Venture Group, Clean Energy Venture Group, and Climate Angels.

PeelON creates plant-based films designed to prolong the freshness of fruits and vegetables, functioning under a B2B model and collaborating with farmers, exporters, and retailers to eradicate single-use plastics throughout the entire fresh produce supply chain.

The company's products ‘PeelON-Fresh’ provide liners for bulk transportation, while ‘PeelON-Retail+’ features retail-ready bags with natural antimicrobial properties and ethylene absorbents to preserve freshness and minimize food waste.

Taraka Ramji Moturu, Founder and CEO of PeelON, a plant biologist says, “At PeelON, we believe that sustainability must be accessible, affordable, and scalable. This funding allows us to bridge a critical gap in the global produce supply chain — by replacing single-use plastics with compostable, shelf-life-extending alternatives. With support from visionary investors like growX ventures, we’re building a new normal for how fresh food moves from farm to fork.”

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Venkata Ravi Sankar Ummidi, Co-founder & CTO, PeelON, a microbiologist says “At PeelON, we’ve engineered packaging that is not only affordable, compostable and cold chain-compatible, but also proven in-field across crops, climates, and continents.”

The start-up intends to use the acquired funding to enhance research and development (R&D) and production capabilities in Visakhapatnam; recruit personnel in sales (USA and India), R&D, and regulatory compliance; initiate marketing efforts directed at exporters of leafy greens, bananas, and grapes; and seek certifications and regulatory approvals in various regions.

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PeelON's films utilize renewable plant-derived materials, such as starches, plant proteins, biopolymers, and natural defense elements encapsulated for gradual release. Every material is safe for food use and certified as compostable.

PeelON incorporates naturally occurring plant defense compounds into a biodegradable polymer matrix using a patented encapsulation technique. These compounds gradually emit vapours that suppress microbial proliferation, slow down ripening, and ensure moisture equilibrium. The film's protective qualities also diminish the transfer of oxygen and moisture, which helps to delay spoilage.