Singapore-based circular economy technology company ecoSPIRITS has raised $10 million in an oversubscribed Series A funding round, led by New York-based circular economy investment firm Closed Loop Partners.

Four leading Asian and global institutional investors have also joined the funding round, including food sector private equity investor, Proterra Asia; Pavilion Capital; Convivialité Ventures, the venture arm of global wine and spirits leader, Pernod Ricard; and ecoSPIRITS’ existing venture capital investor, Wavemaker Partners, ecoSPIRITS said in a statement on Wednesday.

Existing ecoSPIRITS investor Wavemaker Partners, will also be participating in the Series A fundraise, building on a seed investment in the company that was completed in late 2020.

According to the statement, the Series A proceeds will be used to strengthen ecoSPIRITS’ leadership position in closed loop packaging technologies for spirits and wine and accelerate its research and development program.

The new funding will also help ecoSPIRITS scale up its hardware, software and Internet-of-Things (IoT) research and development program, expanding its investment in its Intelligent Circular™ roadmap.

The funding will also be used to expand operations in key markets worldwide, including the United States, and grow its regional customer and engineering teams in Miami, London, Singapore and Shanghai.

At the time of funding, the ecoSPIRITS’ closed loop technology platform is active or launching in 25 countries worldwide, including the majority of the world’s largest economies.

Sui Ling Cheah, ecoSPIRITS Executive Board Chair, said the successful close of the firm’s Series A round, not only validates ecoSPIRITS’ impressive progress in building a comprehensive technology platform, but also marks a significant milestone in its journey to global scale.

“The future gets brighter when more resources are invested in circular economy innovation,” she added.

According to the statement, the new investors bring deep expertise in the circular economy, sustainability, the food sector and wine and spirits to the ecoSPIRITS journey.

“There is immense opportunity to scale circular solutions across the supply chain for premium spirits and wine,” said Bennett Cohen, Managing Director and Co-Head of the Closed Loop Growth Opportunities Fund at Closed Loop Partners.

Through its innovative reusable packaging technology, he said ecoSPIRITS is leading the transition to a less wasteful future for the industry.

To strengthen its governance, ecoSPIRITS will expand its board of directors with the appointment of Cohen from Closed Loop Partners.

In his role at Closed Loop Partners, Cohen co-leads the growth equity investment practice focused on advancing circular solutions in various sectors.

Cohen’s appointment to the ecoSPIRITS board follows the appointment of Eric Tan as independent director in November 2022.

“At Proterra we believe firmly in the business case for more sustainable food and beverage packaging,” said Tai Lin, Managing Partner, Proterra Asia.

He sees the potential impact of the ecoSPIRITS’ system in reducing carbon emissions and packaging waste while improving the business economics of the entire supply chain.

This investment was made via the Proterra Asia Food Strategy, which seeks to capitalize on the accelerating consumer demand that comes with growing urban populations and the emergence of a new generation of consumers looking for safe, high quality food products with a focus on health, nutrition, convenience, social impact and sustainability.

Stéphane Longuet, Convivialité Ventures Co-Founder and Managing Director, said the firm’s investment will help develop a company that is offering such an innovative solution to its industry, by drastically reducing waste and carbon emissions.

“EcoSPIRITS’ approach is perfectly in line with our group’s objectives to reduce its carbon emissions and we are looking forward to using it on a large scale around the world,” he added.

Convivialité Ventures’ investment in ecoSPIRITS also marks the launch of a special equity investment program that will provide an opportunity for ecoSPIRITS’ most important global partners to support closed loop packaging innovation.

Over time, the equity program will be open to key partners who are committing to the circular economy transition as part of their own supply chain innovation and sustainability programs.

“Research indicates that single-use glass packaging produces the highest greenhouse gas emissions compared to other beverage packaging materials,

“EcoSPIRITS’ reusable closed loop distribution system decreases emissions associated with spirits by approximately 60-90 percent while maintaining products quality and reducing cost for suppliers,” said Paul Santos, Managing Partner, Wavemaker Partners.

“Since our initial investment in ecoSPIRITS two years ago, we’ve been impressed with their growth as they’ve expanded their presence to 25 countries and forged partnerships with major spirits players like Pernod Ricard and Diageo,” he added.

Founded in Singapore in 2018, EcoSPIRITS is a company that has developed low carbon, low waste distribution technology for premium spirits and wine.

The ecoSPIRITS technology is now available in more than 15 countries across Asia Pacific, Europe and the Americas.

More than 1,500 bars, restaurants and hotels have adopted the technology.

EcoSPIRITS is now rapidly building a global network of closed loop service, with coverage to grow to 25 countries worldwide by early 2023.

Wavemaker Partners closes fourth fund above goal at $136 million