Helsinki, Finland-based Innomost develops, produces, and sells renewable cosmetic ingredients for the cosmetics and personal care industry, based on the ethically produced raw material, Finnish wood. The company says, “Our valuable bio-based products are suitable for a wide range of sustainable chemical industry innovations.”
Innomost raises funds
In a recent development, the company announced that it has raised €5M in a fresh round of funding. The round was led by Metsä Spring Ltd., with Innovestor and angel investors joining the round. The funding was completed with grants and loans from Business Finland as well as other public financing sources.
What does Innomost develop?
In the current scenario, consumers want to use natural, renewable, and sustainable cosmetics that are good for them and for the planet. However, the majority of ingredients and packaging materials used today are made from fossil fuels, plastic, or palm oil, which are harmful to the environment. This is where Innomost steps in.
Founded in 2016, the company develops and produces bioactive ingredients from forest industry side streams that allow its clients to make innovations in the cosmetic beauty industry.
By using birch bark side streams, Innomost can upcycle naturally occurring raw materials that would normally be used for energy production or other lower value purposes into ‘high-quality’ products. The products are environmentally sustainable, this is because they come from a renewable carbon source instead of fossil fuel-based materials.
Sami Selkala, CEO and Founder of Innomost, mentions, “It’s really a win-win situation. The raw materials for Innomost’s products are available in large volumes at a feasible cost. Our raw material originates from Nordic forests, not from lands that could be used for food or feed. We are on top of the new beauty trend for upcycling, zero waste, and full-cycle natural cosmetics.”
Selkala adds, “We have several other industries in our sights that can all replace negative impact products and materials, including pharmaceutical, techno chemical, textile, and nutraceutical industries.”
Products offered by Innomost
The company’s current product portfolio includes birch charcoal powder, birch bark powder, betulin, suberin, and azelaic acid. These ingredients help cosmetic product categories including skincare, haircare, body care, decorative cosmetics, and oral care.
For instance, Azelaic acid is an effective solution for acne, which has ‘exploded’ as a skin problem with the daily usage of face masks. Another product, Birch bark powder, offers deep cleansing for skin and hair, replacing extremely problematic microplastics.
Innovestor Partner Myron Seto adds, “The market potential, particularly in cosmetics, is very sizable, and Innomost has developed a new industrial technology that can disrupt the global market supply. We look forward to tracking Innomost’s growth as they scale up production with its new pilot plant, displacing non-eco-friendly products with the use of natural betulin.”
The proceeds from this round will help Innomost bring its birch bark innovation into new markets as a sustainable alternative for environmentally harmful ingredients in consumer products.
The funds will also be used to set up a pilot plant in its hometown of Kokkola, Finland. The company aims to build a production facility which is capable of producing 20 tonnes of birch bark products per year by 2023. The pilot plant will be used to test and plan the process for the next industrial-scale plant.
Moreover, the company will also be investing towards further R&D work, as well as growing its existing customer base in international markets.