Paptic Raises €23M to Scale Up Sustainable Packaging
Paptic, a Finnish company that manufactures wood fibre-based packaging materials, has raised €23 million in growth financing.
The round was led by the European Circular Bioeconomy Fund (ECBF) and Ecolab, a global water and hygiene solutions company. Other investors included Itochu, a Japanese trading house, and the Finnish Climate Fund.
The financing will be used to accelerate Paptic's expansion into new markets, develop new product offerings, and support the company's goal of carbon neutrality by 2030.
Paptic's materials are made from renewable wood fibres and are recyclable with traditional paper recycling infrastructure. The company's products are designed to replace plastic packaging in a variety of applications, including food packaging, e-commerce shipping materials, and retail bags.
"We are delighted to welcome our new investors to the Paptic team," said Tuomas Mustonen, CEO and co-founder of Paptic. "This financing will help us accelerate our growth and make a significant impact on the global packaging market."
The global flexible packaging market is estimated to be worth over €200 billion annually. Paptic believes that its materials have the potential to replace a significant portion of this market, which is currently dominated by plastic.
"The demand for sustainable packaging is growing rapidly," said Guillaume Gras, Investment Director at ECBF. "Paptic is well-positioned to capitalise on this trend with its innovative and scalable materials."
Paptic's growth is being driven by several factors, including the increasing awareness of the environmental impact of plastic packaging, the growing demand for sustainable products, and the tightening of regulations on plastic use.
The company is already seeing strong demand for its products from a variety of customers, including leading brands in the food, retail, and e-commerce sectors.
"We are confident that Paptic has the potential to be a major player in the global packaging market," said Luis Pereira, Senior Vice President and General Manager of Ecolab's Nalco Water Paper Division. "We are excited to support the company's growth and help it achieve its sustainability goals."
Paptic's growth financing is a significant milestone for the company and its mission to create a more sustainable packaging industry. The company is well-positioned to capitalise on the growing demand for sustainable packaging, and its materials have the potential to make a significant impact on the environment.
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