CleanHub, the Germany-based company that stopping plastic from entering oceans, has on Wednesday announced it has raised $7 million in funding led by Singapore-based venture capital firm Integra Partners and the pan-European venture capital firm Lakestar.

The round also saw participation from prominent new and existing investors, Silence VC, 468 Capital and Übermorgen Ventures, and sustainability thought leaders including Dan Bartus, and Stefan Gross-Selbeck, CleanHub said in a statement.

According to the statement, CleanHub will use the funds to accelerate its mission to eliminate plastic waste entering oceans and drive systemic change in the waste management industry, enabling the circular economy of plastic.

“We see climate tech as a key contributor to sustainable, equitable and thriving economies in emerging markets, and we’re proud to start this journey with CleanHub,” said Jennifer Ho, Partner at Integra Partners.

According to her, CleanHub innovative approach to waste management, coupled with Integra Partners experience in fintech, creates some really compelling opportunities to tackle the plastic pollution problem in a different way.

“Their strong presence in Southeast Asia aligns perfectly with our investment strategy,

“We’re excited to be joining forces with the CleanHub team, who are not just addressing sustainability today but are also setting the pace for its future,” she added.

According to CleanHub, 2 billion people in coastal regions worldwide do not have access to proper waste management, and the firm addresses this waste management gap in developing countries and the funding shortfalls for efficient waste infrastructure.

It establishes waste management connections in coastal regions previously underserved and offers plastic credits to eco-conscious businesses in alignment with the growing consumer demand for sustainable products and practices.

In the process, this offers brands an opportunity to enhance their sustainability credentials and gain a competitive edge in the market.

With heightened scrutiny on greenwashing, brands are increasingly seeking transparency in their climate initiatives, CleanHub has also developed a track and trace system, with each bag of waste weighed, photographed, and monitored through artificial intelligenve (AI) and manual checks, ensuring accountability.

The firm became the first plastic credit system verified by TÜV SÜD under the ISO 14064-3 standard, adapted for plastic credit verification, setting a new benchmark for transparency and rigor within the plastic credit market.

CleanHub also collaborates with partners to drive the circular economy, assuring the efficient collection, processing, and reintroduction of plastic waste.

As recycling rates are expected to rise from 9 percent to 30 percent by 2030, it said the market for recycled material feedstock is projected to increase more than fivefold to $170 billion during the same period.

It opined that this growth emphasizes the sizable potential and importance of CleanHub’s work in this sector.

CleanHub Founder and Co-Chief Executive Officer (CEO) said that the latest funding allowed the firm to expand its operations and accelerate the transition to a circular economy.

“With this support, we’re excited to further develop our vision to become the digital infrastructure for the emerging waste management industry in South-East Asia,” he said.

He also said that having Integra Partners and Lakestar as partners is expected to enhance its access to the markets where they are operating.

Additionally, he said the firm looks forward to evolving its proposition of becoming a provider of recycled feedstock for industrial supply chains.

Meanwhile, Lakestar Partner Mathias Haniel said that by bridging waste management gaps in developing countries and empowering businesses with plastic credits, CleanHub aligns with the necessary demands of the growing eco-conscious consumer.

“In a time where our oceans face significant environmental challenges, we are investing in people with the vision and courage necessary to face them,” he added.

In addition to the funding announcement, CleanHub also announced the appointment of Louis Pfitzner as its Co-CEO, effective immediately.

Pfitzner will serve as Co-CEO alongside Joel Tasche. As Co-CEO, Pfitzner will guide all commercial aspects of the business, including growth strategies and revenue generation efforts.

Pfitzner, a serial Entrepreneur and Co-Founder of Salonmeister (acquired by Treatwell) and Caya, brings extensive experience in developing scalable business models and leveraging innovative technologies.

His proven track record, combined with his entrepreneurial spirit, positions him as a powerful catalyst for change and growth within the organization.

“Our approach is to address one of today’s most pressing environmental issues, as we continue to solidify our place as a leading force in the industry,” said Pfitzner.

“By steering the waste management sector towards a circular economy, we’re creating a better world while delivering value for our stakeholders,

“I look forward to working with the team in expanding our impact, promoting environmental cleanliness and economic sustainability,” he added.

Australia’s plastic alternative firm Uluu aims to build commercial plant in 2025