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Hamburg-based tech startup BIO-LUTIONS International AG, which is basically a manufacturer of ecological packaging and disposable tableware made from agricultural residues has announced recently that they have secured €8.3M funding. The key investors were Delivery Hero SE and the KfW subsidiary DEG.
How will they use the new funding?
Recently the company has also established a production plant in India. The German company claims that it has seen a surge in demand for its sustainable products, including the interest of large global retailers.
The green tech startup plans to use the new funds to kickstart its global expansion, first by increasing production in India and second by building new production facilities in Europe and Asia.
Offering sustainable alternatives to single-use plastics
BIO-LUTIONS was founded in 2017 by Eduardo Gordillo and Stefan W. Dircks and has co-developed a patented technology that makes it possible to produce packaging and disposable tableware from a variety of agricultural residues without the need for additional binding agents or chemicals. The use of agricultural residues – which are globally available and until now have mostly been disposed of for a fee as waste products – significantly reduces raw material costs. This, for the first time, enables a sustainable product to compete with disposable plastic products in terms of price.
In addition to this, BIO-LUTIONS acts according to a model of positive social and ecological impact in India, by sourcing its raw materials such as sugar cane leaves and banana stems from local smallholders. This offers farmers an additional source of income and thus helps to reduce poverty among the rural population. The use of agricultural residues also reduces air pollution by providing an alternative to the incineration of crop residues.
BIO-LUTIONS founder and CEO Eduardo Gordillo stated:
A partnership with two internationally operating firms such as Delivery Hero and the DEG, makes it possible for a young company like BIO-LUTIONS to realise their expansion strategy. This important step enables BIO-LUTIONS to sustainably build our team, our production sites and our customer portfolio. It is an honour and a privilege to work with these renowned companies moving forward.
Christiane Laibach, spokeswoman for DEG’s management commented:
We are delighted to continue to support BIO-LUTIONS, a young, innovative company on its way. Our investment today follows our initial investment into the company in the form of our Up-scaling programme. We see great promise in the production of alternatives to plastic packaging made from plant residues.
Emmanuel Thomassin, Chief Financial Officer at Delivery Hero added:
Participating in the financing of BIO-LUTIONS helps us to further implement our long-term strategy – with BIO-LUTIONS we have a new and important addition to our portfolio which has high social and ecological value.
Stay tuned to Silicon Canals for more updates in the tech startup world.
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