FINLAND – Paptic, a Finland-based company specializing in wood fiber-based packaging materials, has successfully secured €4.5 million (US$4.9 million) in the second closing of its growth financing round.
This round was led by the private equity fund UB Forest Industry Green Growth Fund and featured participation from Emerald Technology Ventures, SIG InnoVentures, and the European Innovation Council Fund.
The company’s flagship product, also named Paptic, is a recyclable material designed to serve as a sustainable alternative to plastics in packaging applications. Since 2018, these Paptic materials have been available on an industrial scale.
With the infusion of new financing, Paptic aims to fortify its presence in the European market and expedite its growth in Asia.
The company’s distinctive contract manufacturing business model enables rapid capacity increases, a process that will be further accelerated by the recent investment, particularly in the expansion of Paptic’s foam-based manufacturing technology.
Tuomas Mustonen, CEO and co-founder of Paptic, expressed excitement about the closed financing round and emphasized the company’s ambitious goal to achieve €100 million (US$108.87 million) in revenue by 2026.
He stated, “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.”
In September of the previous year, Paptic secured €23 million (US$25.04 million) in Series A funding from the European Circular Bioeconomy Fund (ECBF), Ecolab, and Itochu Fibre Ltd.
This earlier investment played a crucial role in enabling Paptic to expand its material range, enhance global availability, improve customer service, and scale its foam-based manufacturing technology. It also aligns with Paptic’s commitment to achieving carbon neutrality by 2030.
Tuomas Mustonen expressed satisfaction that Paptic’s efforts to reduce the use of fossil-based materials in flexible packaging are being recognized as sustainable and commercially viable alternatives.
He emphasized that the new investments position the company to take the next step in its journey, boosting growth in new markets.
The renewable and recyclable materials offered by Paptic are touted as a drop-in solution for replacing plastics in flexible packaging, running efficiently on existing converting lines.
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