According to the Finnish firm, the growth investment will support its product range development, production alliances, and the accessibility of Paptic materials on a global scale
Paptic raises €23m in growth financing. (Credit: Tamanna Rumee on Unsplash)
Fibre-based packaging materials maker Paptic has secured €23m in growth financing to expedite the development of packaging materials and expand its ability to serve customers worldwide.
The Finnish company’s shareholder base has increased with new strategic partners and international equity investors, such as the European Circular Bioeconomy Fund (ECBF) and Ecolab. Earlier shareholders like Itochu Fibre also participated in this financing round.
In addition, Paptic has received €2.5m from the European Innovation Council’s Accelerator programme.
The packaging materials maker also secured a non-dilutive capital loan of €10m from the Finnish Climate Fund, to scale up Paptic’s foam-based manufacturing technology.
According to the Finnish firm, the growth investment will support its product range development, production alliances, and the accessibility of Paptic materials on a global scale.
Additionally, the funding will hasten the industrialisation of Paptic’s foam-based manufacturing technique.
Furthermore, the investment in expansion will support the company’s goal of becoming carbon neutral by 2030.
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.”
ECBF aims to establish a bio-economy and circular economy for transition towards a sustainable future and Paptic was a perfect fit for their portfolio.
The presence of US-based Ecolab in North America is also anticipated to aid the firm’s future expansion in that region.
Ecolab’s Nalco Water Paper Division SVP and GM Luis Pereira said: “Our shared vision of protecting our planet and its vital resources serves as a foundation for this partnership.
“Our expertise and broad offerings, combined with our global reach, will help expand Paptic’s opportunities for growth.”
In the future, the packaging materials maker has plans to strengthen its presence in Europe, expedite growth in Asia, and assess opportunities for market expansion into new areas like North America.