[Funding] IAN Fund invests US$1.4 Million in IIT Kanpur backed startup Phool.co

IIT Kanpur backs Phool.co, a biomaterial startup. The startup today announced that it has raised US$1.4 Million in a pre-Series A funding round. The funding round was led by IAN Fund and San Francisco based, Draper Richards Kaplan Foundation.

About Phool.co

Ankit Agarwal and Prateek Kumar found Phool.co in July 2017. It is an innovative startup that focuses on the circular economy of converting floral waste into Charcoal free Luxury incense products. It has recently also developed “Fleather” using their flower cycling technology. Fleather is a viable alternative to Animal leather. For this, PETA recently awarded it the Best Innovation in Vegan World Award.

The company's vision is simple. It aims sustainable development goals using a circular economy, promoting sustainable consumption, and bringing dignified livelihoods. Further, it is rapidly expanding its operations to Tirupati, Andhra Pradesh.

During the lockdown, the company ensured its supply chain by sourcing flower waste directly from the distressed horticulture farmers; thus, bringing them critical income in such tough times.

Ankit Agarwal, Founder Phool.co said:

“Phool.co is a sustainable solution to the monumental temple-waste problem in India. Through our efforts, we aim to build natural alternatives to synthetic chemical-based products by using deep-tech & Research. We are perhaps India’s first natural incense brand taking a digital-first approach and have a first-mover advantage as bio-leathers are barely available in India. We are delighted to get IAN on board as an investor and the funds raised will be used to advance the research and scale the operations of the company.”

IIT Kanpur's role

IIT Kanpur’s "Foundation for Innovation in Research, Science and Technology (FIRST)", is one of the best academic TBIs in the country. It is primarily engaged in hardware-based product development. The company states that IIT Kanpur has been Phool’s backbone for technical research.

Speaking on the latest development, Dr. Abhay Karandikar, Director IIT Kanpur said:

“Innovation in product development aside, I am a huge fan of Phool.co. It is deeply committed to upliftment of marginal women in our society. Phool.co has given a life of dignity to dozens of women. They did this despite having an option of automating the process. For a young entrepreneur, this is remarkable commitment towards nation building”

IAN Funds US$1.4 Million in the StartUp

Speaking on the latest development, Padmaja Ruparel, Founding Partner, IAN Fund said:

“Innovative solutions for the sustainable development of community is the need of the hour. Phool.co‘s circular economy model brings triple bottom benefits of environmental, social, and financial sustainability. Ankit and Prateek are passionate entrepreneurs with an innovative product for a sustainable world.”

Earlier, Phool.co had raised Rs 3.38 crore in a seed round from Social Alpha (FISE) and DRK Foundation. It also saw particpation from IIT Kanpur and Balmer Lawrie, the company said in a statement.

Speaking on its efforts to create a new-circular economy, Manoj Kumar, Chairperson & Founder of Social Alpha & Senior Advisor at Tata Trusts said:

“I am extremely proud of what Ankit and team have achieved by pioneering new-circular economy solutions with temple-flowers. The resilience and courage with which Ankit has faced the challenges have been incredible as this sector has not witnessed entrepreneurial or investment risk taking in past. Phool has set up a new benchmark and I hope this success story motivates more people from Tier 2 cities to pursue entrepreneurial missions with their market-creating innovations.”

For its endeavors to make innovative and sustainable products, Phool.co has received several international recognitions. These include

• The United Nations Young Leaders Award for Sustainable Development Goals

• United Nations Momentum of Change Award at COP 2018

• Asia Sustainability Award 2020, Hong Kong

• Alquity Transforming Lives Awards, London

• Breaking the Wall of Science , Berlin