Dharaksha Pockets INR 24.8 Cr From Avaana Capital To Build Biodegradable Packaging Materials

Biotech startup Dharaksha Ecosolutions has raised INR 24.8 Cr ($2.95 Mn) in a seed funding round from Avaana Capital. With participation from the Shark Tank India team, Vinners Capital, India Angels and Soonicorn, among others. 

The Delhi-based company will use the fresh capital to expand its production capabilities, intensify R&D practices and strengthen market presence in the sustainable packaging industry.

Founded in 2020 by Anand Bodh and Arpit Dhupar, Dharaksha Ecosolutions develops mycelium-based biodegradable packaging materials using agricultural waste as feedstock.

Dharaksha claims to have safely disposed of 7,000 tons of agricultural waste to date, repurposing it into packaging material. 

“Our vision is to create a sustainable alternative to non-biodegradable materials, completing a circular ecosystem by returning nutrients to the soil through composting,” said Dhupar.

In 2022, Dharaksha reportedly raised INR 4 Cr in its pre-seed funding round led by Rainmatter & Momentum Capital.

Dharaksha competes against companies like Bambrew, Beco and Chuk, which focus on eco-friendly alternatives to traditional packaging materials.

This investment in Dharaksha comes amid growing activity in India’s sustainable packaging sector. Several companies in this space have seen developments in recent months.

Bambrew, another cleantech startup offering plastic-free packaging solutions, raised INR 60 Cr in a Series A round led by Blume Ventures in March 2024. 

The company plans to expand into primary packaging for FMCG and food and beverage categories.

The broader sustainable packaging landscape in India has been active, with companies like AmplePac, Ecopack Solutions, and Greenhandle gaining traction. AmplePac, a Mumbai-based platform, designs and manufactures large-scale FMCG packaging using blockchain technology. Ecopack Solutions, based in Delhi, specialises in paper tube design for eco-friendly packaging.