Cassava Bags, a privately held Australian sustainable products company, plans to raise some external capital inequity to accelerate growth in Australia and then expand internationally, co-founder Chun Lau said.
The Sydney-based company, which manufactures and sells biodegradable bags and film derived from cassava, is planning to raise a Series A of up to AUD 3.5m (USD 2.5m) in the first quarter ahead of a potentially larger Series Bin 12 to 24 months, Lau said. It welcomes investor approaches, especially from impact investors and those that have experience scaling similar firms, he added.
The Series A is being run via Australian equity crowdfunding platform Birchal, but it “will definitely need” corporate advisors in the future for rounds to come, Lau said.
The Series A capital will be used in part to add sales and administrative headcount, and to increase manufacturing capacity to keep up with growing demand for its “zero waste packaging”, the co-founder continued. The Series B, with the amount not yet decided, will fund international expansion, possibly to Europe or Asia, among other things, he said without elaborating.
Lau owns the company with co-founders Bruce Rossi and Telusa Mapapalangi, and another undisclosed business partner.
Cassava Bags’ products, derived from cassava, are “completely organic” and unique in the domestic market, Lau said. He pointed to Australian sustainable packaging company BioPak as an indirect rival.
The company extracts cassava and combines it with organic components to formulate the biodegradable film used in its products, according to its website. Its bags are not petroleum-based and are 100% non-toxic, free of polyactic acid and bisphenol, and designed to be single-use, causing no environmental harm, per its website.
Cassava is a plant from the American tropics commonly used for its tuberous roots, from which cassava flour,breads, tapioca, a laundry starch, and an alcoholic beverage are derived.
by Sam McKeith in Sydney 4 February 2022
Copyright © https://www.mergermarket.com/info/