Sustainable packaging startup Zerocircle has raised ₹20 crore in seed funding, with the investment round led by Nithin Kamath’s venture capital firm, Rainmatter. The funding round also saw participation from 1Crowd, Trousdale Sarosphere LLC, environmental advocate Trudie Styler—co-founder of the Rainforest Fund—along with VC Grid, 7th Gen Ventures, Spectrum Impact, and LNB Group.
Neha Jain, Founder and Managing Director of Zerocircle, told Moneycontrol that the company intends to utilize the funds to scale production, expand its product range, and enter international markets, particularly in the EU and the GCC Middle East region, where stringent regulations against plastic use are increasing the demand for sustainable alternatives.
“We are focusing a lot on Europe and other GCC markets, we have contracts in place. India is a market that we are building for because India has huge volume requirements. When we say 4 million orders, it means nothing here, we need 10X of this. So, we need to build our capacity for this,” Jain stated.
Jain also noted that the funding includes grants from the Sequoia Spark Fellowship Programme. Zerocircle was part of Sequoia’s 2023 cohort of the Sequoia Spark Fellowship, a program offering a $100,000 equity-free grant along with mentorship.
Founded in 2019 and based in Pune, Zerocircle has developed patented technology that enables the production of seaweed-based materials within existing manufacturing setups, eliminating the need for additional capital investments.
In the past year, the company has introduced a commercial-grade seaweed coating for food packaging, securing orders from key players in the takeaway industry. Its product lineup includes coated paperboards, food boxes, and trays designed to serve as alternatives to single-use plastics.
“Right now, there is more demand than supply, especially if one can put it at the proximity of the price point that the market is expecting then there are a lot of takers. The first few years we spent scaling the production capacity and coming close to the price point that is agreeable to our consumers,” Jain remarked.
Looking ahead, Zerocircle aims to increase its production capacity tenfold by 2028 and introduce advanced coatings, flexible films, and improved paper products. The company collaborates with distributors and manufacturers rather than working directly with restaurants and takeaway businesses.
“These innovations aim to replace up to 500 million single-use plastic items annually and 3,000 MT of pieces of single use plastic, addressing a critical environmental challenge. With its disruptive approach and industry recognition, including accolades like the Tom Ford Plastic Innovation Prize, Zerocircle is positioned as a key player in the global fight against plastic pollution,” Jain added.
