Seaweed-based Packaging Startup Zerocircle Raise ₹5 crore in Pre-Series A Round

Pune-based biotech startup Zerocircle has raised ₹5 crore in a pre-Series A round co-led by 3one4 Capital and Rainmatter by Zerodha.

Exactly one year ago, in January 2025, the startupraised Rs. 20 crores (~$2.3 mn) in its seed funding round from Rainmatter Capital, 1Crowd, and other investors.

Founded by Neha Jain in 2020, Zerocircle is developing seaweed-based packaging to replace traditional fossil-based materials in food delivery, including burger boxes, fried-food containers, bakery packaging, and takeaway trays.

 The startup focuses on sustainable coatings derived from seaweed, offering plastic-free barrier solutions for packaging and materials. Its product portfolio also includes water-resistant coated paperboards and heat-sealable coatings for cutlery pouches.

As plastic waste becomes a growing global problem, regulations are tightening, and large companies are pushing for sustainable operations. Zerocircle’s seaweed-based solution offers an environmentally friendly alternative for companies by reducing or eliminating plastic use. 

Seaweed is a naturally occurring alga that grows in marine ecosystems, and it has been used for food. Now, scientific discoveries have leveraged seaweed’s immense potential to use it for making a plastic alternative.

In addition, seaweed offers environmental benefits, including removing carbon dioxide and trapping toxic nutrients that harm marine life.

In 2024, the Indian government issued guidelines to facilitate the import of high-quality seed materials from abroad, enabling domestic multiplication and ensuring farmers have access to quality seed stock, and companies like Zerocircle have enough raw materials. 

Existing investors of the company also include VC Grid, 7th Gen Ventures, Spectrum Impact, LNB Group, Trousdale Sarosphere, and environmental advocate Trudie Styler.

In 2022, the Pune-based startup Zerocircle was the ‘second-placed winner’ in the Tom Ford Plastic Innovation Prize, a global competition that encourages biodegradable alternatives to single-use plastic bags.

Zerocircle was on the annual list of Change Started 11 Green Startups of the Year 2022.

Listen to the full story about Neha’s journey, facts about seaweed and the Zerocircle plastic alternative on the Change Started YouTube channel.