Finland-based wood fibre-based packaging materials manufacturer Paptic has secured a funding of €23m ($24.84m) to expedite the development of its packaging materials.
This financing round involved participation of new strategic partners and international equity investors.
These investors included water and hygiene solutions company Ecolab and German venture capital fund European Circular Bioeconomy Fund (ECBF).
ECBF investment director Guillaume Gras said: “The versatile applicability of recyclable Paptic materials provides an excellent basis to reduce the use of fossil materials in packaging.
“Our investment will provide Paptic with the resources to accelerate its international expansion, as well as to serve the growing demand for innovative packaging materials.”
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Japanese trade house Itochu Fibre, one of Paptic’s existing shareholders, also took part in the latest round.
Apart from the current equity investments, Paptic received €2.5m from the European Innovation Council, under its Accelerator programme.
The company has also secured a non-dilutive capital loan of €10m from the Finnish Climate Fund.
Paptic said that it will utilise this loan amount for the development and industrial scale-up of its foam-based manufacturing technology.
Paptic CEO and co-founder Tuomas Mustonen said: “Our rapid progress from a startup to a high-growth company, with Paptic materials in use by over 100 customers globally, has made us an appealing investment opportunity and we are delighted to welcome our new international investors to join us.
“A cornerstone of our operation is to work in accordance with the principles of circular economy, to this end, we support our customers to replace plastics in various flexible packaging applications.
“Expanding our global shareholder base was one of the targets of this round, and I am very satisfied with the outcome.”
Moving forward, Paptic is focusing to achieve a revenue of €100m in 2026, with the help of its renewable and recyclable at-scale packaging materials that contribute to a circular economy system.