Finland’s Woodio secures €16.3M to develop sustainable wood composite sanitaryware products (Silicon Canals | The Netherlands)
date: 29/06/2023
Helsinki-based Woodio, an interior and design company known for its sustainable biomaterial innovation, the Woodio material, announced that it has raised €16.3M in growth funding.
To date, Woodio has raised a total of €27M in funding.
The current round was led by UB Forest Industry Green Growth Fund (UB FIGG), an investor that focuses on sustainable and resource-efficient forest and bio-based industries, and the European Innovation Council (EIC).
Existing investors also participated in this round.
Matti Lehtipuu, Managing Partner of UB FIGG, says, “We are excited to announce UB FIGG’s investment into a Finland-based company, which has developed high value-add, award-winning design products from a forest industry side stream.”
“Moreover, we believe Woodio products will make a significant impact by reducing up to 80 per cent of CO2 emissions in comparison to current typical products,” adds Lehtipuu.
An eco-design and material technology company
Woodio is a design company that claims to be the first in the world to manufacture ecological, water-resistant wood composite products for bathrooms.
The company was founded in 2016 by Petro Lahtinen (currently not with the company) and is currently led by CEO Terja Koskenoja.
Koskenoja was appointed in May 2023 and has previously worked as Woodio’s production and development director. She has a background in the forest industry.
The main raw materials used by Woodio are aspen chips and chips made from the forestry sector.
The creation of Woodio’s wood composite products uses very little water and does not include energy-intensive processing steps, in contrast to the production of conventional ceramic bathroom fixtures.
According to the company, in comparison to a ceramic basin of the same size, a wash basin manufactured from Woodio’s biomaterial has an 80 per cent lower carbon footprint..
The goal of Woodio is to combat climate change by using its sustainable biomaterial innovation, the Woodio material, to replace materials with a large carbon footprint.
Koskenoja says, “Environmentally friendly building materials are already increasing their market share as a result of increased regulation and environmental awareness in the construction industry and amongst consumers.”
“In the future, the Woodio material will be used for example in kitchens and outdoor furniture. All products that can be made from ceramics can also be made from our wood composite material. We are also constantly developing new applications for our innovative material.”
Due to increased environmental awareness, many widely used construction materials with a large carbon footprint will be restricted in the future. Woodio’s material meets many current and upcoming regulatory needs, positioning us at the forefront of commercialising sustainable materials,” adds Koskenoja.
Capital utilisationWoodio says it will use the funds to scale its business in Finland as well as accelerate international expansion.
Woodio’s founder, Petro Lahtinen, says, “The commercialisation of Woodio’s biomaterial innovation to this stage is an excellent example of new opportunities in the forest sector. Finland has a long history and significant know-how related to the forest industry, and it is essential for the future development of the industry that funds specialising in forest-based growth companies have started to emerge in Finland.”
Woodio’s Chairperson of the Board, Eerik Paasikivi, adds, “Woodio has created something completely new and unique for a traditional industry, which is hundreds of times the added value of the wood chips. This new significant growth funding creates a great foundation to take Woodio’s biomaterial innovation towards industrial success on a global scale.”
About EIC FundThe European Commission’s European Innovation Council (EIC) Fund invests in all technologies, all industry sectors, all EU member states, and all nations affiliated with Horizon Europe. It offers blended funding for the EIC Accelerator’s investment component.
The EIC Fund’s goal is to help businesses in the development and commercialisation of disruptive technologies, bridging with and crowding in market players, and further sharing risk by developing a sizable network of capital providers and strategic partners suitable for co-investments and follow-on funding. The EIC Fund seeks to close a critical financing gap.
The Fund places a strong emphasis on the objective to close the innovation divide across EU nations as well as the empowerment and support of female founders.