PeelOn, a biotech startup, has raised $1 million in its first-ever funding round, led by GrowX Ventures, a VC firm that focuses on deeptech.
Other investors in this round include Boston Venture Group, Clean Energy Venture Group, and Climate Angels.
After this funding, PeelOn is now valued at $7.9 million.
The startup will use the funds to improve its research and development (R&D) and increase production in Visakhapatnam. It will also expand its sales and regulatory teams in both the US and India.
Additionally, the money will be used to run marketing campaigns for leafy greens, bananas, and grapes, and to manage certifications and regulatory approvals around the world.
“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 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.
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.”
PeelOn was founded in 2022 by Moturu and Venkata Ravi Sankar Ummidi. The startup makes compostable packaging that can triple the shelf life of fruits and vegetables.
PeelOn works with farmers, exporters, and retailers to reduce the use of single-use plastics in the fresh produce supply chain.
The company is also working on research and development for retail products that use a lot of plastic, such as milk pouches. Moturu says they aim to achieve $1 million in annual revenue by next year.
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