04. Jun 2020
French bioplastics startup Lactips has raised 13 million euros in new capital in an investment round led by Bpifrance’s SPI (Société de Projet Industriel) fund, managed on behalf of the French Government as part of the Investments for the Future Program (PIA), and Diamond Edge Ventures (DEV), the innovation investment arm of Mitsubishi Chemical Holdings Corporation (MCHC).
The new infusion of capital will enable the company to ramp up its product development and industrial facilities. Lactips has developed an innovative and responsible biosourced, biodegradable and water-soluble solution, providing an alternative for numerous industrial plastics.
With this key round of fundraising, Lactips will accelerate the industrialization of its plastic pellets and films to offer a wider selection of fully biodegradable and recyclable biosourced packaging. Lactips will press forward with its breakthrough in the packaging products, to respond to the issue of micro-plastics ending up in the oceans. In addition, Lactips will be looking to conquer certain packaging markets in the food and construction sectors as well as single- use packaging.
Lactips’ industrial project is being supported by the SPI fund within Bpifrance, which, through this operation, wants to help drive progress with this essential industry for the ecological transition, while helping create an industry in France with a strong future in this area.
Lactips is also being supported by MCHC, which is committed to develop and offer solutions for a sustainable future. In Japan, which aims to accelerate the introduction of marine biodegradable polymers, this support will be not only financial, but also industrial and commercial.
“This 13 million euros fundraising is structural and strategic at the same time, thanks to these two new shareholders. More than ever, our industries need new solutions to respond to future economic challenges tied to the goal of reducing the environmental impact of plastics. Since our company’s inception, we have successfully demonstrated that our innovative material can cover a wide range of applications. This support for our mission, built around a vision of an economy that is more respectful of the environment and human health, will enable us to rapidly transition to production phase, while continuing to develop the planet’s greenest plastic”, said Marie-Hélène Gramatikoff, CEO and co- founder of Lactips.
The new capital will enable Lactips to:
• continue moving forward with its R&D to develop new applications based on its thermoplastic pallets manufactured in France;
• accelerate its industrialization phase to meet future demand with a new plant in the Gier Valley, which will open in 2021, with the new production lines gradually ramping up;
• access new mass markets (food, construction, single-use plastics, lamination, etc.) in France and abroad.
New jobs will be created (R&D, commercial operations, industrialization and production, support) to support the opening of the new production plant at a 2,500 sq.m site, making it possible to revitalize a former regional industrial hub.
With 20 million euros raised since inception, Lactips now has a group of leading shareholders in place around its co-founders alongside institutional investors (Bpifrance, Demeter, BNP Paribas Développement, Crédit Agricole Loire Haute-Loire) and industrial experts, positioned to support its commercial development (BASF Venture Capital GbmH and Mitsubishi Chemical Holdings through its DEV’s fund).
"The cooperation with Lactips underscores our direction towards circular economy and our commitment to Europe as an important market. It perfectly complements our growing portfolio of sustainable materials. Supporting the development of environmentally friendly products like those of Lactips aligns with our vision of « KAITEKI », which signifies the sustainable well-being of people, society and our planet Earth," says Ansgar POHL, President and CEO Mitsubishi Chemical Europe, the regional headquarters for Mitsubishi Chemical Corporation in Europe.