Tallinm-based startup RAIKU secures €8.8 million. A business that specialises in environmentally friendly packaging substitutes said that it has secured a €3.15M private sector investment, a €5.65M grant, and an equity investment from the European Innovation Council (EIC).
Deep tech startups at seed and development stages that are not yet ready for private investment receive help by EIC Accelerator. It seeks to become the premier early-stage deep technology investor in Europe by combining public subsidies with long-term equity investment.
Karl Pärtel, co-founder of RAIKU says, “Given the current economic climate, this kind of financing is ideal for us. It’s also a very important quality mark for both customers and future investors because we have run through the gauntlet of experts and investors.”
The money raised will be used by RAIKU for manufacturing compostable, chemical-free packaging materials. It also plans on opening the first factory and increase output across the world.
Additionally, the investment will support RAIKU’s efforts to grow its workforce, pursue fresh alliances, acquire equipment, and open a new plant.
Karl Pärtel says, “Our competitors are bubble wrap, paper and cardboard, all of which require a huge amount of resources for production – including wood, chemicals, an insane amount of water and energy.”
RAIKU, which was founded in 2021 by Karl Pärtel and Rain Randsberg, specialised in developing packaging materials that are low-carbon and 100% natural.
RAIKU asserts that it offers chemical-free materials that securely reintegrate into the environment as nutrients, so efficiently addressing environmental problems.