Agrileaf, a leading Indian manufacturer and exporter of biodegradable dinnerware, announced today it has secured INR 16 crore in growth funding led by Capital-A and Samarsh Capital. This investment will enable Agrileaf to expand its operations in existing markets across the US and Europe, as well as build a consumer-facing brand in India. This marks Agrileaf’s first fundraise after being bootstrapped and profitable to date.The round also saw participation from angel investors including Shaji Devekar, Siddharth Bafna, Co-founder of The Nutcracker, Family office of Ved Prakash, Pritie Jain of Bling Mushrooms, Sumeet Bhalotia, Director at Vario Lounge, Dhruv Taneja, Founder – Matchlog and Chiranth Patil- Beta Plus.The funding comes at a pivotal time, as the global biodegradable packaging market is anticipated to grow significantly. According to Mordor Intelligence, the market for biodegradable packaging is expected to reach approximately USD 140.66 billion by 2029, with a CAGR of around 5.97% from 2024 to 2029. This growth underscores the rising demand for sustainable, compostable solutions driven by environmental awareness and stricter regulations on single-use plastics.With this investment, Agrileaf will expand production capacity, enhance its biodegradable dinnerware and packaging line, and deepen its community impact. Operating from a world-class facility in Dharmasthala, Karnataka, Agrileaf integrates a robust supply chain of areca leaf collection with advanced robotics and AI-driven quality control to ensure high-quality, backyard-compostable products that meet both market and environmental needs. Currently, Agrileaf targets to produce up to 300,000 dinnerware products daily by end of 2025 and has created over 1,000 jobs, supporting rural economic development.Commenting on the investment, Avinash Rao, co-founder of Agrileaf, said, “Capital-A and Samarsh Capital’s support empowers us to expand our reach and impact. This investment strengthens our mission to bring sustainable, compostable dinnerware to global markets while fostering the local economy and promoting environmental responsibility. With this backing, we aim to scale operations, enhance technology, and continue creating positive change from the ground up.” Ankit Kedia, founder & lead investor at Capital-A, highlighted the alignment of this investment with Capital-A’s focus on supporting green businesses, “At Capital-A, manufacturing and materials innovation are key pillars of our investment philosophy. Agrileaf’s innovative use of Karnataka’s vast areca plantations has the potential to redefine sustainable tableware solutions”.Sandeep Shenoy, managing partner at Samarsh Capital, added, “Agrileaf has demonstrated how sustainable manufacturing can drive both economic and environmental progress. We are eager to support Avinash and Athishay as they expand into new markets and redefine eco-friendly dining solutions globally.”Founded in 2019 by Avinash Rao and Athishay Jain, Agrileaf provides a sustainable, high-strength alternative to plastic, paper, and bagasse plates. Dedicated to supporting local areca farmers through responsible sourcing, Agrileaf aims to foster a zero-waste, community-centered future with eco-friendly solutions available worldwide.
Published On Dec 3, 2024 at 08:00 PM IST
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