Compostable plastic packaging supplier Tipa has raised $70 million in series C financing, raising its total funding to date to $130 million. The Israel-based company plans to use the latest funding to continue the expansion of its business and technology.
Tipa specializes in compostable flexible packaging. It produces a variety of customizable films and laminates with properties similar to conventional plastics such as polyethylene (PE) and polypropylene (PP).
The compostable products, which Tipa produces using patent-protected formulae, demonstrate excellent optical, mechanical, and barrier properties. According to the company, zero waste remains after the plastics are composted.
Applications for Tipa's packaging include fresh produce, fresh bakery products, dry food, and apparel. Retailers and brand owners using the company's solutions include Waitrose, Woolworth, Riverford Organic Farmers, Pangaia, and Scotch & Soda. Tipa currently operates in the United States, Europe, and Australia.
With the recent funding, the company plans to expand further in these regions, introduce new product lines, and expand into additional markets, with the goal of leading the transition from nonrecyclable to compostable packaging.
Tipa also is forging strategic partnerships with supply chain allies, including Amcor. This collaboration will focus on manufacturing, supplying, and distributing Tipa's certified compostable packaging in Australia and New Zealand.
“Our encounter with plastic packaging waste in our everyday lives has become a constant, alarming reminder of the crisis we face as humanity,” said Daphna Nissenbaum, CEO of Tipa, in a prepared statement.
“In recent years, we have witnessed a sharp increase in the demand for sustainable packaging solutions from consumers, while compostable packaging solutions repeatedly are ranked as the No. 1 choice of consumers around the globe,” Nissenbaum added. “Tipa's packaging offers an answer for brands and consumers who want functional, sustainable, and organically recyclable substitutes for packaging that leave no waste behind.”
Tipa anticipates strong growth in demand for compostable packaging in coming years; numerous retailers and brands — including PepsiCo, Mars, Nestlé, and Walmart — have stated their intention to switch to 100% reusable, recyclable, or compostable plastic packaging by 2025.