Helsinki-based modern-day interior and design brand Woodio has collected €16.3 million in growth funding led by UB Forest Industry Green Growth Fund (UB FIGG) and the European Innovation Council (EIC), along with its previous investors. The startup stands out by seamlessly blending the timeless beauty of Nordic design traditions with the cutting-edge innovation of sustainable bio-materials. The brand has gained recognition for its remarkable line of sustainable sanitaryware, crafted exclusively from the groundbreaking Woodio® material. With this newfound financial backing, Woodio plans to embark on an ambitious journey of expanding its business within Finland while also accelerating its presence on the global stage.
Woodio uses aspen in chip form and chips generated from side-streams of the forest industry as its main raw material. Unlike the manufacturing process of traditional ceramic bathroom fixtures, the production of Woodio’s wood composite products consumes very little water and does not involve energy-intensive processing steps. The carbon footprint of a wash basin made from Woodio’s biomaterial is up to 80 percent smaller compared to an equivalent-sized ceramic basin. At the same time, Woodio’s material is durable and lightweight, and the products made from it are easy to install and maintain.
“We have now reached a new growth phase and strongly aim for international expansion. During the next year, we’ll boldly expand outside of Finland, while we’re also planning a significant investment in scaling our own business in Finland,” says Terja Koskenoja, who was appointed as Woodio’s new CEO in May. Koskenoja previously worked as Woodio’s production and development director and has a background in the forest industry.
”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 percent of CO2 emissions in comparison to current typical products” comments Matti Lehtipuu, Managing Partner of UB FIGG.
“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. We are pleased that Woodio is among the first investments of UB FIGG,” comments Woodio’s founder Petro Lahtinen.
“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”, summarises Woodio’s Chairperson of the Board Eerik Paasikivi.
Woodio’s mission is fighting climate change by replacing high carbon footprint materials with its sustainable biomaterial innovation, the Woodio® material.
“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,” says Koskenoja.
The global market value of sanitaryware, ceramic tiles and solid surfaces is growing at a fast pace. In 2022, the European sanitaryware market was estimated at approximately 10 billion euros. At the same time, the demand for ecological materials in sanitaryware is increasing.
“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,” summarises Koskenoja.
Woodio has raised a total of €27 million in funding so far.
