Australian compostable cling film business gets $17m Series A

The transaction comprises AUD 11m in equity and AUD 13m in asset finance. Equity investors include W23, the venture capital arm of domestic grocery retailer Woolworths, Australian impact investor Giant Leap, Grill’d Innovation Fund, and Thomas Trading, which is controlled by Thomas Foods International. The asset finance came from Rabobank affiliate DLL Group.

Several participants in an AUD 3m seed round that closed last year, The Australian Financial Review (AFR) reported in a story re-posted by Great Wrap. Among them were US-based Trail Mix Ventures and two sustainability-focused investors, Groundswell Fund and Springbank Collective.

Great Wrap was founded in 2019 by husband-and-wife team Jordy and Julia Kay. They worked with Monash University on a prototype that replicates the look and feel of traditional plastic stretch wrap but breaks down into carbon and water. The technology converts starch from potato waste through bacterial fermentation into a compostable biopolymer.

“The world’s largest companies are making plastic reduction commitments to end plastic waste, but unfortunately we will not recycle our way out of this mess,” Julia Kay told AFR.

“Our technology can support this transition to a safer and cleaner future, and we now have the capacity to manufacture all of Australia’s stretch wrap, thanks to our impact-aligned investors who’ve helped create a brighter future for all.”

The Series A funding will be used to obtain equipment for a new factory in Tullamarine, a suburb of Melbourne, with annual production capacity of 30,000 tonnes. A biorefinery is being built on the same site, which will process 50,000 tonnes of locally sourced potato waste every year. Great Wrap claims it will be the largest biorefinery in the southern hemisphere once fully commissioned.

The funding will also support full commercialisation of the core Cling Wrap, Catering Wrap and Pallet Wrap products. In addition to targeting the Australian market, the company wants to start selling into the US and Europe this year and ultimately open plants in both regions.

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• Topics
• Australasia
• Early-stage
• Cleantech
• Australia
• Giant Leap Fund
• Cleantech