Zerocircle raises $2.3 million

Pune-based Zerocircle secures $2.3 million seed funding to scale seaweed-based packaging solutions

Zerocircle, a Pune-based biotech startup, has successfully raised Rs 20 crore ($2.3 million) in seed funding to accelerate its mission of replacing petrochemical plastics with sustainable seaweed-based alternatives. The funding round was led by Rainmatter, the venture capital firm of Zerodha co-founder Nithin Kamath, with participation from early-stage investors including VC Grid, 7th Gen Ventures, Spectrum Impact, and environmental advocate Trudie Styler. Founded in 2019 by former Google employee Neha Jain, the startup has developed patented technology enabling seaweed-based material production within existing manufacturing infrastructure, eliminating the need for additional capital expenditure.

Funding Details

The seed round includes grants from Sequoia’s Spark Fellowship Programme, a $100,000 equity-free grant and mentorship initiative. Zerocircle will deploy the capital to scale production capacity, optimize supply chains, expand its team, and accelerate innovation in product lines. The company has already secured commercial orders from major packaging distributors and food brands for its commercial-grade seaweed coating designed for food packaging applications.

Strategic Use

Zerocircle’s expansion addresses growing demand in regions with stringent anti-plastic regulations, particularly the EU and GCC Middle East markets. The startup aims to exceed 3,000 tonnes of annual production capacity by 2028 across coated paperboards, food boxes, and advanced coatings. These innovations target replacing up to 500 million single-use plastic items annually, positioning Zerocircle as a critical player in the global bioplastics industry’s transition toward sustainable packaging solutions.

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