Seed financing for Cellugy A/S

Denmark’s Cellugy will use an €4.9m seed financing to scale up of its bio-fabricated dry cellulose production platform aimed at replacing fossil-based petrochemical ingredients in personal care products.

The financing round was led by Germany’s ICIG Ventures and Denmark’s Unconventional Ventures, with new, US investor Joyance Partners joining the round, along with existing investors PSV DeepTech, The Footprint Firm, and EIFO.

According to Cellugy A/S, the funding will accelerate the deployment and commercialization of the company’s EcoFLEXY pilot-scale fermentation platform from kilogram to ton-scale. 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.

In the personal care industry, many cosmetics brands pledge commitment to more sustainable, environmentally conscious formulations, placing natural, biodegradable ingredients like cellulose in high demand. Cellugy’s platform harnesses the power of bacteria, leveraging cellulose-producing microorganisms to produce high-purity, crystalline cellulose derived from the bioconversion of sugar. The platform creates fully bio-based and biodegradable alternatives to carbon-intensive petrochemicals.

The global cosmetics market is booming and is expected to reach US$415.29bn by 2028. With a growing focus on health and sustainability, consumers are increasingly seeking bio-based alternatives. The natural and organic cosmetics market is projected to surge at a CAGR of 9.76%, reaching USD 50.46 billion by 2027.

Cellugy is providing a drop-in alternative, which is particularly attractive as it is easily scalable, fits within standard equipment, and can be used in existing infrastructures.