A firm called Mushroom Material, which turns agricultural waste into environmentally friendly packaging, has raised more than $5 million in initial money, with Wavemaker Partners and SEEDS Capital leading the investment.
Black Kite Capital, K1W1, and Icehouse Ventures took part. A 1,300-square-meter pilot plant will be established in Auckland, New Zealand, using the investment.
Mushroom Material, a company founded in 2020 by Shaun Seaman and Jotinder Singh, uses the strength of mycelium, the structure found in mushrooms, to provide a sustainable substitute for polystyrene (Styrofoam).
The business produces millions of pellets made of fungus, which are subsequently covered in a binding agent to enable them to be formed into unique packaging options. Cost-effectiveness and scalability are addressed by this technology.
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Its packaging solution is naturally water resistant, low density, and compostable. It also provides shock absorption. A variety of organic resources, such as food scraps, cardboard, and agricultural waste like hemp, straw, and wood chips, can be used to make it.
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The greentech startup claims that more than 200 businesses have shown interest in buying its goods. In 2025, Mushroom Material intends to begin delivering orders to current clients.
“At Mushroom Material, we aim to bridge the gap between the packaging industry’s need for scalable, cost-effective solutions and society’s demand for environmental sustainability. Our mission is to scale this technology to meet global demand for eco-friendly packaging, delivering superior material characteristics while maintaining uncompromised sustainability,” said CEO Seaman.
About Mushroom Material
Mushroom Material goal is to create packaging made of mushrooms in order to remove non-recyclable plastics from the environment.
