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Brazilian startup Sem Frascos lands investment to cut plastic waste in auto sector

What's the deal? Fundepar, a venture manager based in the Brazilian state of Minas Gerais, has made the first investment from its Arapy programme — a fund focused on social and environmental impact businesses. The recipient is Sem Frascos, a startup that built a system to eliminate single-use plastic containers for automotive fluids like brake fluid and coolant.

The investment, finalised in May 2025, will fund the startup's commercial expansion across Brazil. The deal was approved by Arapy's investment committee, which includes representatives from the Federal University of Minas Gerais (UFMG), its support foundation Fundep, Fundepar, and the market. No financial figure was disclosed.

Sem Frascos developed a smart fluid-distribution system designed for workshops and dealerships. It replaces small plastic bottles with a centralised dispensing setup, cutting waste while improving operational control and productivity.

Why now? Regulatory and environmental pressure on plastic waste is mounting in Brazil. According to the country's national fuel and lubricant distributors' association, the automotive oils segment alone consumes more than 200 million plastic containers per year. WWF data shows Brazil produces roughly 6 million tonnes of plastic waste annually, yet recycles just 1.2%.

"This investment came at a strategic moment of expansion and consolidation of our technology, accelerating our entry into dealerships and strengthening our structure to grow nationally," said Luiz Miranda, Sem Frascos' chief executive.

What could go wrong? Changing entrenched supply-chain habits in auto workshops is no small feat. Sem Frascos must convince dealerships and independent garages to overhaul how they handle fluids — a shift that requires upfront infrastructure changes and buy-in from an industry not known for rapid adoption of new processes.

The signal: Arapy is Fundepar's fourth structured investment vehicle, and its focus on impact-driven ventures reflects a growing trend among university-linked fund managers in Latin America: backing science-based startups that pair financial returns with measurable environmental outcomes.

Sem Frascos previously went through Fundepar's Motirõ accelerator and is a finalist for Brazil's 2026 Anprotec National Award for Innovative Entrepreneurship. Fundepar said the Arapy programme continues to evaluate new opportunities.

Read more: diariodocomercio.com.br

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