Dharaksha Ecosolutions Secures Rs 24.8 Cr Seed Funding Led By Avaana Capital

Dharaksha Ecosolutions, a biotech-driven material R&D startup, raised  Rs 24.8 crore in a seed funding round led by institutional investor, Avaana Capital.

The funding amount will be utilised to expand its production capabilities, intensify its R&D practice and strengthen its market presence, positioning itself as a leader in the sustainable packaging industry, as per the press release.

"We are excited to welcome Avaana Capital as our lead investor," said Arpit Dhupar, Co-Founder and CEO of Dharaksha Ecosolutions. He added, "At Dharaksha, our vision is to create a sustainable alternative to non-biodegradable materials, completing a circular ecosystem by returning nutrients to the soil through composting. While packaging solutions is our first offering, this funding will enable us to develop more innovative solutions shortly."

Founded by Anand Bodh and Arpit Dhupar, Dharaksha Ecosolutions develops large-scale solutions aimed at replacing petroleum-driven products with sustainable alternatives that offer equal or better performance. It utilises agricultural waste as feedstock to develop mycelium-based packaging materials that are fully biodegradable.

Anjali Bansal, Founding Partner at Avaana Capital, commented, "Dharaksha, with its biotechnology solutions, is at the forefront of building a circular economy, perfectly aligning with Avaana’s mission to invest in climate-focused innovations. We are confident that Arpit, Anand, and their team will make a significant impact in reducing plastic use and advancing climate action through their innovative solutions."

The startup said that it gained widespread recognition during its appearance on Shark Tank India Season 3, where it secured an all-shark deal. It added that in its endeavor to develop next-generation alternative materials, Dharaksha has created an alternative to MDF board, a widely used wood substitute in furniture, doors, and boards, that uses mushroom-extracted resin instead of formalin-based resins. Unlike formalin, which is known to emit carcinogenic fumes, Dharaksha claimed its board is safer for consumers and superior in physical properties.

The company is also working on alternatives for plastic films, which too will be made from extracts generated by mushrooms in the submerged growth stage, as per the press release.