Woodio, a Finnish modern-day interior and design company known for its sustainable biomaterial innovation, the Woodio® material, has secured a total of 16.3 million euros in growth funding for its international expansion. The funding round was led by UB Forest Industry Green Growth Fund (UB FIGG) and the European Innovation Council (EIC), and it was also joined by previous investors. Woodio is renowned for its sustainable sanitaryware made from the Woodio® material.

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. 

The newly secured funding will be used to make a significant investment in scaling Woodio’s business in Finland along with accelerating international expansion. 

“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.

UB Forest Industry Green Growth Fund, a private equity investor with an investment focus on sustainable and resource efficient forest and bio-based industries, led the funding round as a new investor.

”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.

The demand for Woodio’s material will increase significantly in the future

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 can 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 euros in funding so far.

About Woodio

Founded in 2016, Woodio is a Finnish design company and the first in the world to manufacture ecological, water-resistant wood composite products for bathrooms. Woodio’s products combine both unique design and ecology. Woodio has been awarded the prestigious Fennia Prize design award and numerous other industry awards both in Finland and internationally.

About EIC Fund

The European Innovation Council Fund from the European Commission is an agnostic Fund: it invests across all technologies and verticals, and all EU countries and countries associated to Horizon Europe. It provides the investment component of the EIC Accelerator blended finance.

The EIC Fund aims to fill a critical financing gap and its main purpose is to support companies in the development and commercialisation of disruptive technologies, bridging with and crowding in market players, and further sharing risk by building a large network of capital providers and strategic partners suitable for co-investments and follow-on funding. The Fund pays particular attention to the empowerment and support of female founders as well as the ambition to reduce the innovation divide among EU countries.