PackAge+ raised 1.7M pre-series A, leveraging AI and helping to make the semiconductor supply chain greener

Circular economy startup PackAge+ announced that it has raised $USD 1.7 million in pre-series A funding. According to the founder and CEO of PackAge+ Ye De Wei, the goal of this funding round is to accelerate the company's circular packaging scale, expand diversified services to create diversified revenue, and expand internationally.

A large number of return stations have become the cornerstone of PackAge+'s future plans. Ye De Wei said that this fundraising is to allow PackAge+ to develop diversified business models and focus on the development of more circular service application scenarios, such as sharing return stations with circular cups, circular lunch boxes, and other circular startups, to expand the energy of shared circular services.

Ye De Wei also revealed that PackAge+ is collecting various data points from the circular system to build an AI model that calculates the best recycling route, which means the least carbon footprint. They have also collaborated with a well-known food delivery platform. In the future, restaurant operators will use PackAge+ circular packaging instead of plastic bags for food packaging.

Ye De Wei also revealed that PackAge+ is collecting various data points from the circular system to build an AI model that calculates the best recycling route. /Photograph : 蔡仁譯攝

The investors of this funding round include CTBC Venture Capital, Chang Hua Commercial Bank Venture Capital, National Development Fund, Arbor Impact Investment, SIC Sustainable Impact Capital, Shell Amplify, and other strategic investors.

According to the Environmental Protection Administration, Taiwan's e-commerce industry uses more than 220 million disposable packages annually, equivalent to producing over 50,000 tons of garbage and causing serious environmental impacts. In order to reduce packaging waste from the source, the "E-commerce Packaging Reduction Regulations" will be implemented on July 1, 2023. The regulations set targets for the use of circular packaging for businesses with capital over NT$150 million. By 2026, the circular packaging utilization rate should reach 15%, including the four major e-commerce companies MOMO, Eastern Home Shopping & Leisure, PChome, and Shopee, as well as B2C businesses such as food, cosmetics, 3C products, and clothing.

PackAge+’s “circulating packaging” product can be reused at least 50 times and effectively reduce the waste of disposable packaging when shopping on e-commerce platforms.

It can reduce around 1.2kg of carbon emissions using PackAge+’s packaging every time. However, besides the durable eco-friendly packaging, the key to the service is how to establish a perfect circular system from shipping, returning, to recycling and cleaning of the packaging bags.

PackAge+’s “circulating packaging” product can be reused at least 50 times and effectively reduce the waste of disposable packaging when shopping on e-commerce platforms. / Photograph : 配客嘉 提供

PackAge+ has connected e-commerce platforms, return merchants, and consumers, using the cooperation of e-commerce platforms or return merchants' coupons as a reward for consumers to return packaging. At the same time, it has connected e-commerce platforms and chain stores such as Shopee, Family Mart, and Carrefour. So far, there are 4,500 return stations and 650,000 circular packages in circulation, which is equivalent to reducing about 195,000 kilograms of disposable e-commerce packaging waste.

Collaborating with the semiconductor industry

In addition to its development in the circular economy and e-commerce fields, PackAge+ has also expanded into the technology industry. In 2023, PackAge+ collaborated with a well-known semiconductor wafer factory to develop "Eco-Circular Boxes" made from the factory's waste plastic, which will be used for logistics and transportation by their partner suppliers to create a more environmentally friendly supply chain.

Through this initiative, PackAge+ CEO Ye De Wei expressed his hope to collaborate with more technology manufacturers in the future. Besides using the waste plastic to create circular boxes for internal use, they will also provide these boxes to e-commerce platforms that sell relevant products.

For example, if a laptop brand sells well on a platform, then the laptop brand can produce its own circular box and provide it to customers through the platform, and it can reduce the brand's carbon emissions in the Scope 3 category.

Steve Lin, co-founder of SIC Sustainable Impact Investing, commented, "Most companies today only focus on reducing greenhouse emissions in Scope 1 and Scope 2, but in reality, 80-95% of their emissions fall under Scope 3. We are optimistic about PackAge+’s multi-dimensional approach to help companies reduce their Scope 3 emissions, including using circular packaging for corporate gifts, circular box transportation in the supply chain, and other emerging services to become a driving force for companies to significantly reduce their emissions."

The partner of Chang Hua Commercial Bank Venture Capital, also mentioned that PackAge+ can outsource the cleaning work in their circular packaging system to social welfare units, creating more job opportunities for vulnerable groups and promoting sustainable and inclusive employment and social innovation.

〔Original :Meet Global〕
https://meet-global.bnext.com.tw/articles/view/47902