Agrileaf, a leading Indian manufacturer and exporter of biodegradable dinnerware, has secured INR 16 crore in growth funding led by Capital-A and Samarsh Capital.
Agrileaf to expand in US & Europe with funds
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.
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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, and others. The funding comes at a pivotal time, as the global biodegradable packaging market is anticipated to grow significantly.
According to Mordor Intelligence, the market for biodegradable packaging is expected to reach approximately $140.66 billion by 2029, with a CAGR of around 5.97% from 2024 to 2029. This growth underscores the rising demand for sustainable, compostable solutions driven by environmental awareness and stricter regulations on single-use plastics.
Ankit Kedia, founder & lead investor at Capital-A, highlighted the alignment of this investment with Capital-A’s focus on supporting green businesses. “At Capital-A, manufacturing and materials innovation are key pillars of our investment philosophy. Agrileaf’s innovative use of Karnataka’s vast areca plantations has the potential to redefine sustainable tableware solutions.”
With this investment, Agrileaf will expand production capacity, enhance its biodegradable dinnerware and packaging line, and deepen its community impact. Operating from a world-class facility in Dharmasthala, Karnataka, Agrileaf integrates a robust supply chain of areca leaf collection with advanced robotics and AI-driven quality control to ensure high-quality, backyard-compostable products that meet both market and environmental needs.
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Agrileaf targets to produce 3 lakh dinnerware
Currently, Agrileaf targets to produce up to 300,000 dinnerware products daily by the end of 2025 and has created over 1,000 jobs, supporting rural economic development. Commenting on the investment, Avinash Rao, co-founder of Agrileaf, said, “Capital-A and Samarsh Capital’s support empowers us to expand our reach and impact. This investment strengthens our mission to bring sustainable, compostable dinnerware to global markets while fostering the local economy and promoting environmental responsibility.”
Sandeep Shenoy, managing partner at Samarsh Capital, added, “Agrileaf has demonstrated how sustainable manufacturing can drive both economic and environmental progress. We are eager to support Avinash and Athishay as they expand into new markets and redefine eco-friendly dining solutions globally.”
