Apeel Sciences has raised US$250m in a new financing round led by GIC, bringing the company's valuation to over one billion dollars.

The California-based company has developed a plant-derived coating that is sprayed onto freshly harvested produce to reduce water loss and prevent oxygen from getting in. This increases the shelf life by up to triple, helping to cut down on food waste.

“We are proud to team up with GIC to help create a better future with less waste,” said James Rogers, Founder and CEO of Apeel Sciences.

“Food waste is an invisible tax imposed on everyone that participates in the food system. Eliminating global food waste can free up $2.6 trillion annually, allowing us to make the food ecosystem better for growers, distributors, retailers, consumers and our planet.

"Together, we’re putting time back on the industry’s side to help deal with the food waste crisis and the challenges it poses to food businesses.” 

To date, Apeel Sciences has achieved several major commercialisation milestones with the top food retailers in the United States and Europe.

On average, U.S. retailers that use Apeel have experienced a 50% reduction in shrink, a 5-10% growth in dollar sales, and an incremental 10% growth in dollar sales when sold in conjunction with in-store marketing campaigns.

The company added that the Covid-19 pandemic has caused major disruptions in the food supply chain and made it more important than ever safeguard food supplies.

It said that the current food system is calibrated so closely to past supply and demand expectations and the exact perishability of fresh produce that when the system is stretched, the system breaks.

By introducing more time, access and freshness across the supply chain, Apeel says that its technology extends value and increases operational flexibility for suppliers and retailers.