Zerocircle, a biotech startup specializing in seaweed-based alternatives to petrochemical plastics, has raised Rs. 20 crore in a funding round led by Nithin Kamath’s Rainmatter, with additional investments from early-stage venture capital firms 1Crowd, VC Grid, 7th Gen Ventures, and environmental advocate Trudie Styler, among others.

The Pune-based startup, founded in 2020 by Neha Jain, aims to use the funding to scale up manufacturing, streamline its supply chain, and grow its team. Zerocircle’s eco-friendly packaging is designed to break down naturally in various environments, including landfills, marine bodies, and even the human body, without requiring specialized conditions.

“We’re seeing an overwhelming number of sustainable packaging claims in the market, which can be confusing. Our solution is straightforward and the product biodegrades naturally wherever it ends up,” Jain told ET.

Zerocircle’s product lineup includes seaweed-based coated packaging for hamburger boxes, fried food containers, bakery items, and food trays, providing a sustainable alternative to traditional plastic materials. The company has already secured contracts and aims to produce around four million single-use plastic alternatives by the end of the year.

“Europe’s stringent sustainability regulations make it an ideal starting point, but we also see strong policy-driven demand in the GCC. By next year, we plan to have a robust presence in India, with inventory available locally,” Jain said, emphasizing the startup’s growth strategy focused on markets committed to replacing harmful plastics.

Looking ahead, the company expects its annual production capacity to exceed 3,000 tonnes across various product categories, including coated paperboards and advanced coatings, by 2028. Zerocircle, currently operational in Europe, plans to expand to the Gulf Cooperation Council (GCC) markets while preparing for a full-scale launch in India by next year.