Finnish startup Paptic raises €23M to accelerate the development of packaging materials
Paptic, a Finnish manufacturer of wood fibre-based packaging materials, has raised €23 million in growth financing. The company’s shareholder base expanded with the European Circular Bioeconomy Fund and Ecolab.
- Established in 2015, Paptic Ltd is a high-growth company with headquarters in Espoo, Finland. The company is developing Paptic®, fibre-based and recyclable materials to replace plastics and other conventional materials in packaging.
- Paptic has more than doubled its revenue annually for four consecutive years. The company is heading to achieve a revenue of EUR 100 million in 2026. Today, it has a team of 35 professionals, and its materials are delivered to over 50 countries.
“Our rapid progress from a startup to a high-growth company 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 by 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,”Tuomas Mustonen, CEO and co-founder of Paptic, comments.
- The company’s shareholder base was expanded with new strategic partners and international equity investors: a German venture capital fund European Circular Bioeconomy Fund (ECBF) and a global water and hygiene solutions company Ecolab. Several existing investors also joined the round, such as Japanese trade house Itochu Fibre Ltd.
- Besides the equity investments, Paptic was also granted €2.5 million by the European Innovation Council’s Accelerator program. The company also received a non-dilutive capital loan of €10 million from the Finnish Climate Fund.
- The growth financing will support the development of the company’s product portfolio, production partnerships, and the availability of Paptic materials globally.