Paptic, a Finland-based company specialising in wood fibre-based packaging materials, has raised €4.5m ($4.9m) in the second closing of its growth financing round.
This round was led by private equity fund UB Forest Industry Green Growth Fund and also saw participation from Emerald Technology Ventures, SIG InnoVentures, and the European Innovation Council Fund.
This latest funding follows the first round, in which the company raised €23m in September 2023 to accelerate the growth of its packing material.
Both rounds bring the total growth financing to €27.5m.
Established in 2015 and headquartered in Espoo, Paptic has 45 employees and distributes its packaging materials to more than 50 countries.
The company’s eponymous flagship product is a recyclable material designed to replace plastics in packaging applications. Since 2018, these Paptic materials have been available on an industrial scale.
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With the new financing, Paptic aims to strengthen its European market presence and accelerate growth in Asia.
The company’s unique contract manufacturing business model facilitates rapid capacity increases, which will be further expedited by the recent investment, particularly in scaling up Paptic’s foam-based manufacturing technology.
Paptic CEO and co-founder Tuomas Mustonen said: “Now that the financial round is officially closed, we are excited to focus on the next stages of our future growth. We have the ambitious goal to reach €100m in revenue in 2026.
“The new capital raised during the past year puts us in a strong position to invest in our people, sales channels, and product development. Our growth is based on our ability to competitively serve international brand owners who are seeking sustainable alternatives to replace plastics in their packaging.”