Paptic Secures €4.5 Million in Second Growth Financing Round

Paptic Secures €4.5 Million in Second Growth Financing Round

Paptic, a Finland-based company specializing in wood fiber-based packaging materials, has successfully raised €4.5 million ($4.9 million) in the second closing of its growth financing round. The private equity fund UB Forest Industry Green Growth Fund led this round, with additional participation from Emerald Technology Ventures, SIG InnoVentures, and the European Innovation Council Fund.

This recent funding follows the initial round in September 2023, where the company secured €23 million to expedite the growth of its innovative packaging materials. Combined, both rounds amount to a total growth financing of €27.5 million.

Founded in 2015 and headquartered in Espoo, Paptic currently employs 45 individuals and supplies its packaging materials to over 50 countries. The company’s flagship product is a recyclable material designed to replace plastics in packaging applications, available on an industrial scale since 2018.

With the new infusion of capital, Paptic aims to fortify its presence in the European market and accelerate growth in Asia. Leveraging its unique contract manufacturing business model, the company can swiftly increase its capacity, a process further facilitated by the recent investment, particularly in scaling up Paptic’s foam-based manufacturing technology.

Tuomas Mustonen, CEO, and co-founder of Paptic expressed excitement about the closed financial round, stating, “We are eager to focus on the next stages of our future growth. With the ambitious goal of reaching €100 million in revenue by 2026, the new capital positions us strongly to invest in our people, sales channels, and product development. Our growth is anchored in our ability to competitively serve international brand owners seeking sustainable alternatives to replace plastics in their packaging.”

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