BIOWEG Raises €16M To Expand Biodegradable Microplastic Alternatives

The funding was led by Axeleo Capital Green Tech Industry Fund, with participation from the EIC Fund, NBank Capital, BonVenture, and seed investor Dr.-Ing. Frank Jenner.

With total funding of €22 million, BIOWEG plans to accelerate market entry and expand its presence across Europe.

Founded in 2019 by Dr. Prateek Mahalwar and Srinivas Karuturi, BIOWEG uses precision fermentation to transform food-industry byproducts into bacterial cellulose, refined through green chemistry into sustainable alternatives to fossil-based polymers. The company runs a pilot production facility in Quakenbrück with a six-tonne capacity and a materials and applications lab at Bayer Crop Science in Monheim.

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As Europe moves to eliminate intentionally added fossil-based microplastics, supply chains in personal care, home care, pharmaceutical, and agricultural sectors are rapidly evolving. Companies need high-performance, compliant ingredients produced at scale in the EU demand that BIOWEG is well-positioned to meet, enabling easy reformulation.

To support this shift, BIOWEG is developing a new facility to expand production from its current 6,000-litre fermentation capacity to large-scale volumes. Co-located with a major German sugar producer, the plant will leverage feedstock synergies and lower operating costs. Meanwhile, the Quakenbrück pilot line will continue fulfilling near-term customer orders, while commercial, regulatory and production teams are expanded to accelerate growth across Europe.

Dr Prateek Mahalwar, Co-founder and CEO of BIOWEG, shared: Today’s funding allows us to move decisively into industrial manufacturing and to support customers as they transition away from microplastics. Our focus is on matching and expanding polymer-level performance with bio-based, biodegradable ingredients produced at European scale.

The new funding will support BIOWEG’s scale-up commercialization and the construction of its first industrial bacterial cellulose plant in Germany. This milestone transitions the company from pilot to full-scale production enabling it to meet growing industrial demand for sustainable microplastics free ingredients.

About BIOWEG

BIOWEG, a Germany-based innovator, uses conscious ChemDesign to create sustainable, high-performance, bio-based ingredients. Combining biotechnology, material science, and molecular simulation, their 100% animal-free, scalable ingredients serve forward-thinking global brands in cosmetics, personal care, nutraceuticals, agriculture, and food sectors seeking differentiated, science-driven, and eco-friendly solutions.