Xampla Raises $7 Million to Expand Biodegradable Coatings

Xampla has raised $7 million in its latest funding round, which aims to help expand its biodegradable, food-safe Morro Coating for takeout packaging, sacs and cups into new markets and support the transition away from single-use plastics.

New investors include cleantech backer CIECH Ventures, part of the international developing chemical group. Existing partners Amadeus Capital Partners, Horizon Ventures, Cambridge Angels, Cambridge Enterprise and Martlet Capital also supported the round.

Morro materials are reportedly fully biodegradable, home compostable and food safe. They were developed through research at the University of Cambridge and are said to have high strength, grease and oxygen barrier properties.

Their core resins can be used with other products in sustainability-conscious packaging, microencapsulation and coatings.

The latest capital injection is aimed at advancing production of Morro materials and expanding the consumer brand into new markets, a move it hopes will help manufacturers phase out single-use plastics from their packaging solutions.

Xampla will also look at future applications for its Morro Edible and Morro Soluble Films, while the implementation of its Morro Nutri product is designed to preserve and stabilize vitamins and nutrients in food and beverage products.

In addition, the company will work with its new partners to reduce the cost of producing sustainable materials, maintain high quality standards and optimize operational efficiency.

Total investment in Xampla to date is $17.6 million.

Alexandra French, CEO of Xampla, said: "This investment is a testament to the shared commitment of our supporters who can see that Xampla products are the gateway to a new era of material sustainability. This new funding will support the expansion of our Morro materials into new areas and new applications and allow us to make a huge impact. We are determined to lead a future where natural materials thrive and make traditional plastics a thing of the past."

"Xampla's innovative approach and impact on the industry are highly aligned with CIECH Ventures' values," added Szymon Smyk, CEO of CIECH Ventures. "We are particularly interested in clean technology solutions that address real-world problems such as plastic pollution and promote sustainable development. We are pleased to support the development of Morro materials, which are both impressive and necessary in today's world."

This latest investment builds on Xampla's partnership with 2M Group of Companies to expand the production and distribution of its plant-based materials. The partners were subsequently awarded the Innovate UK Smart Grant for further scaling.

Consumer brands have also been working with Xampla in an effort to make their product packaging more sustainable. These include skincare company ELEMIS, which has launched biodegradable skincare sampling bags that use leftover waste from the company's plant crops to create biofilms.