Australian startup Zero Co will close its doors on April 30 after failing to reach profitability. The company, founded in Byron Bay and later based in Melbourne, spent six years working to reduce plastic waste through refillable cleaning products.
Zero Co gained attention in 2021 after raising $5 million in six hours through crowdfunding. The startup also secured $6 million in venture capital. Additionally, another $2 million from crowdfunding in 2024. Despite raises, revenue declined from $11.38 million to $10.8 million this financial year.
Founder and CEO Mike Smith said the goal was always to build a sustainable, profitable business. But after multiple attempts at marketing revamps and product redesigns, the company could not find a path forward. He said the shift to paper-based packaging last year was meant to solve major problems but instead led to new ones.
Many customers complained about leaks from the new packaging, especially with laundry and dish liquids. Although the company provided refunds and tried to fix the issues, the problems persisted. Smith said they spent the last six months trying everything possible to save the company.
Despite setbacks, the business remains solvent and will return its remaining funds to shareholders. Smith acknowledged the decision would upset many investors but said closing now was the most responsible move. The company plans to hold a final sale to clear remaining stock before the shutdown.
Zero Co leaves behind a strong environmental legacy. It has removed the equivalent of 45 million plastic bottles from oceans and waterways. Smith expressed pride in their achievements. He plans to continue the mission to reduce plastic waste on a global scale, even after closure.
