Dallas-based PlantSwitch, a startup that is creating high-quality, biodegradable plastic alternatives for the food-packaging industry, announced on Tuesday the close of a $3.25 million seed round, according to a news release.
The funding will create opportunities for future growth. Specifically, PlantSwitch CEO and co-founder Dillon Baxter said an expansion of product offerings and the development of supply chain infrastructure.
"This capital will enable us to expand our product offering, scale our supply chain infrastructure, and continue hiring talented people as we pursue our mission of making a closed-loop economy a reality," Baxter said in the release. "We are grateful for the belief in our vision from an investor group that provides immense strategic value in both manufacturing and distribution. As we seek to bring better-quality, eco-friendly packaging options to market, this is a major step towards accelerating our impact."
PlantSwitch was founded in January 2020 by Southern Methodist University grades Dillon Baxter and Maxime Blandin, who were also teammates on SMU's golf team.
Baxter was named to the 2021 NTX Inno Under 25 list. Baxter said while traveling with the golf team, he and Blandin found that they hated the single-use paper straws they would encounter because they would often fall apart mid-drink. That led the pair to launch the startup.
It grew from just three clients in June 2020 to about 300 in September 2021. Baxter said at the time that revenue had increased 350% since January 2021. In August 2021, PlantSwitch reported raising $500,000 in equity funding.
"Even with the barriers that the global pandemic and related supply chain challenges presented ..., we've been able to bring on new customers and meet supply demands," Baxter said in the release.
PlantSwitch first launched as a B2B supplier of biodegradable straws and cutlery and is now planning to expand its products to other renewable packaging products, including cups, plates, water bottles, food takeout containers, and cosmetic and CPG packaging products, according to the release.
The company is also able to create custom products for large-scale clients. Notable customers for PlantSwitch include Hillstone Restaurant Group, Pressed, Discovery Land Company, Catch Hospitality Group, Just Salad and The Hampton Social.
