In the personal care industry, many leading cosmetics brands pledge commitment to more sustainable, environmentally conscious formulations, placing natural, biodegradable ingredients like cellulose in high demand. Cellugy, a Danish industrial biotech startup, has developed a unique platform that creates fully bio-based and biodegradable alternatives to carbon-intensive petrochemicals.
Now, the startup has raised €4.9 million in seed funding to scale up production of its EcoFLEXY dry cellulose product to industrial volumes. The round was led by Germany’s ICIG Ventures and Denmark’s Unconventional Ventures, with new, U.S.-based investor Joyance Partners joining the round, along with existing investors PSV DeepTech, The Footprint Firm, and EIFO, which backed NIL Technology and Kost Capital.
The funding will accelerate the deployment and commercialisation of EcoFLEXY, currently in the pilot phase. This involves a substantial production increase, from kilos to several tons yearly. The funds raised will enable Cellugy to expand its manufacturing capacity to commercial production to satisfy extensive and increasing customer demand. The funding will also support further product co-development partnerships to take EcoFLEXY into new application areas and expand the company’s IP portfolio and headcount.
First-of-its-kind bio-fermentation platform
Founded in 2018 by Isabel Alvarez-Martos, Deby Fapyane, and Parun Sihombing, Cellugy’s solution is a first-of-its-kind bio-fermentation platform that produces high-performing dry cellulose from the bioconversion of sugar.
Using microorganisms to produce cellulose has the least impact on nature and, therefore, makes production more sustainable, without the need to cut down trees or harvest cotton. Additionally, the solution is a scalable, sustainable process that fits seamlessly into standard manufacturing methods and existing infrastructures, making it ideal for cosmetics and chemical manufacturers.
The platform creates biodegradable alternatives to carbon-intensive petrochemical ingredients, which have essential uses in personal care products as emollients, surfactants, emulsifiers, and rheology modifiers to thicken and stabilise formulations.
“Reliance on fossil-based petrochemical ingredients is today’s most critical sustainability issue in producing personal care products. With our technology, we genuinely see a future completely free from these polluting ingredients,” said Dr. Isabel Alvarez-Martos, CEO and co-founder at Cellugy. “Our mission is to develop sustainable solutions for everyday products, so we’re naturally pleased to partner with impact-driven investors. Together, we can achieve those goals.”
“Investing in Cellugy represents a strategic step for ICIG Ventures, underlining our commitment to fostering innovations that drive sustainability in the industrial sector. Cellugy’s breakthrough in biofabricated cellulose technology not only aligns with our mission to support green technology but also promises to revolutionize the personal care industry and beyond,” said Dr. Pelin Yilmaz, Investment Director at ICIG Ventures. “This sustainable alternative to petrochemicals, coupled with Cellugy’s efficient business model and potential for cross-industry application, presents a compelling combination. We are particularly excited about the synergies in accompanying Cellugy in its scale-up journey. Our investment underscores our belief in Cellugy’s team, technology, and their vision for a more sustainable industry.”
“When meeting Isabel, Paruntungan, and Deby we were particularly impressed with their unified mission of creating a sustainable alternative to petrochemical ingredients. Their groundbreaking platform technology has the potential to revolutionize not only the personal care industry, which is sorely in need of more sustainable alternatives, but could also disrupt industries like textiles and food,” said Thea Messel, founder and General Partner at Unconventional Ventures. “As an impact investor, seeing the founders’ determination to translate outcomes of scientific research into innovative commercial products with significant sustainability gains really stood out to us, and we are proud to be backing them on their growth journey ahead.”
