Dharaksha Ecosolutions, a biotech-driven material R&D startup has raised Rs 24.8 crore (about $2.95 million) in a seed funding round led by institutional investor, Avaana Capital.
The fund 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.
“We are excited to welcome Avaana Capital as our lead investor. 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,” said Arpit Dhupar, Co-Founder and CEO of Dharaksha Ecosolutions.
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.”
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.
So far, Dharaksha has converted 7,000 tons of agricultural waste into packaging solutions.
In addition to packaging, Dharaksha is developing a mushroom-based alternative to MDF boards, commonly used in furniture and construction. Unlike traditional MDF, which uses formalin-based resins that emit carcinogenic fumes, Dharaksha’s board uses a safer, mushroom-extracted resin. The company is also working on biodegradable, waterproof plastic film alternatives made from mushroom extracts.
Both the MDF board and plastic films are in the lab phase, with market validation and third-party testing planned. Dharaksha aims to launch these products by next October.
The startup gained widespread recognition during its appearance on Shark Tank India Season 3, where it secured an all-shark deal.
Dharaksha had previously raised $522K led by LetsVenture and others.
