Areca leaf-based biodegradable dinnerware manufacturer secures ₹16 crore in growth funding

BL Mangaluru Bureau Updated - December 04, 2024 at 02:31 PM.

It will help the company expand its operations in existing markets across the US and Europe

Agrileaf, a manufacturer and exporter of biodegradable dinnerware, has secured ₹16 crore in growth funding led by Capital-A and Samarsh Capital.

Addressing media persons in Mangaluru on Wednesday, Avinash Rao, Co-Founder of Agrileaf, said 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 of Matchlog, and Chiranth Patil of Beta Plus.

With this investment, Agrileaf will expand production capacity, enhance its biodegradable dinnerware and packaging line, and deepen its community impact.

Operating from a facility in Dharmasthala of Dakshina Kannada district in Karnataka state, Agrileaf integrates a supply chain of areca leaf collection with 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 2 lakh dinnerware products daily by end of 2025 and has created over 1,000 jobs, supporting rural economic development.

Strengthening its mission

Rao said Capital-A and Samarsh Capital’s support empowers the company to expand its reach and impact. This investment strengthens its 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,” he said.

Agrileaf manufactures biodegradable dinnerware from areca leaf. It collects areca leaf from Shivamogga and Dakshina Kannada districts of Karnataka.

He said the company would have 10 areca leaf collection centres in Shivamogga, Dakshina Kannada and Udupi districts by the end of this fiscal. Agri-leaf is planning to use the network of FPOs (Farmer Producer Organisations) in these districts for this purpose.

Athishay Jain, Co-Founder of Agrileaf, said India exports around ₹30-35 crore worth biodegradable dinnerware made out of areca leaf every month. This investment will help expand export market for the company, he said.

Published on December 4, 2024 09:01

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