Paptic successfully closed the 2023 growth financing round; EUR 27.5 million was raised to accelerate global growth and ability to serve global customers

Paptic logo on a wall

Paptic Ltd, a high-growth company manufacturing wood fibre-based packaging materials, has successfully completed the year 2023 with significant investment from new investors. The company made the second closing of the growth financing totaling EUR 4.5 million at the end of the year. The round was led by the UB Forest Industry Green Growth Fund (UB FIGG), joined by Emerald Technology Ventures, SIG InnoVentures, and EIC Fund. In the first round (first closing) of the two-part growth financing, Paptic raised funding of EUR 23 million. In total, the company has closed EUR 27.5 million in growth financing in 2023.  

“We are very pleased to have closed this investment in Paptic. We have been closely monitoring the company’s progress and the success the Paptic team has had in new product development and work with leading global brands. This all forms a solid base for on-going success and this additional financing will help accelerate its growth”, said David Walker, Senior Partner at UB FIGG.

“Paptic is working at the cutting-edge of packaging, taking a novel approach to solving the huge and growing problems inherent in the current industry,” says Emerald Partner Fredric Petit. “Our investment is a mark of confidence in Paptic’s ability to play a vital role in helping to reduce waste and improve consumer value in packaging.”

“The EIC Fund has established itself as a strong force in EU deep-tech investments. This unique form of financing via EIC – combining grants and equity – is proving itself highly attractive to Europe’s most promising start-ups. We hope that our investment will help Paptic to accomplish their objective of replacing plastics and other conventional materials in packaging, which is also one of the EU Green Deal’s objectives”, said Svetoslava Georgieva, Chair of the EIC Fund Board

“Now that the financial round is officially closed, we are excited to focus on the next stages of our future growth. We have the ambitious goal to reach EUR 100 million in revenue in 2026. 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”, Tuomas Mustonen, CEO and Co-Founder of Paptic, concludes. “Our goal has been to broaden our shareholder base with international investors, and this second closing accomplishes that objective. I am very satisfied with the result.”


The international flexible packaging market size is estimated to be over EUR 200 billion annually, with 70 percent of the materials currently used being plastics. Thin plastic films could be replaced with wood fibre-based and recyclable at-scale Paptic® materials in numerous applications. In the upcoming years, Paptic will concentrate on strengthening its presence in Europe and accelerating its growth in Asia. The company’s unique contract manufacturing business model enables rapid capacity increase, and the new financing will also speed up the industrial scale-up of Paptic’s foam-based manufacturing technology.

The company’s growth strategy is supported by forecasts showing that the amount of packaging will continue to increase due to economic and population growth. Without new innovative fibre-based solutions, like Paptic, a large part of the growth would come from plastic. To reduce the use of fossil-based materials in packaging, the use of resource-efficient materials that are both recyclable at scale and made from renewable raw materials is the choice. Additionally, these materials should be compatible with the existing recycling streams, for example, Paptic® materials are recyclable with cardboard and packaging papers. The materials are also a solution in the future, as they comply with the upcoming EU’s Packaging and Packaging Waste Regulation.

For more information, please contact:
Tuomas Mustonen
CEO and Co-Founder
Paptic Ltd
Tel. +358 50 598 7516

Paptic Ltd is a high-growth company established in 2015 with headquarters in Espoo, Finland. The company has developed Paptic®, fibre-based and recyclable at scale materials to replace plastics and other conventional materials in packaging. Paptic® materials have been available on an industrial scale since 2018. Today, the company employs 45 professionals, and the materials are delivered to over 50 countries.

UB FIGG is a private equity fund investing in companies focused on plastic and other fossil-based material replacements, higher value and more efficient use of wood and agricultural raw material side streams and greater use of these raw materials across a wide range of intermediate and end uses. Through its investments, the Fund helps the forest and bio-based industries to create solutions to mitigate climate change. UB FIGG is a signatory of Operating Principles for Impact Management and reports on the environmental and climate impact of its investments.

UB FIGG is a fund of United Bankers Plc, listed on Nasdaq Helsinki Ltd. United Bankers is a Finnish expert on wealth management and investment markets, established in 1986.

Emerald Technology Ventures is a globally recognized venture capital firm founded in 2000, that manages and advises assets of over €1 billion from its offices in Zurich, Toronto, and Singapore. The firm invests in start-ups that tackle big challenges in climate change and sustainability, with 4 current funds, hundreds of venture transactions, and four third-party investment mandates, including loan guarantees to over 100 start-ups. Bold Ideas. Bright Future.

The European Innovation Council Fund from the European Commission is an agnostic Fund: it invests across all technologies and verticals, and all EU countries and countries associated to Horizon Europe. It provides the investment component of the EIC Accelerator blended finance. The European Investment Bank acts as an investment adviser to the EIC Fund.

The EIC Fund aims to fill a critical financing gap and its main purpose is to support companies in the development and commercialisation of disruptive technologies, bridging with and crowding in market players, and further sharing risk by building a large network of capital providers and strategic partners suitable for co-investments and follow-on funding. The Fund pays particular attention to the empowerment and support of female founders as well as the ambition to reduce the innovation divide among EU countries.