Estonian producer of sustainable packaging RAIKU raised €6,3M

Estonian producer of sustainable packaging RAIKU raised €3,15M from the @EUeic European Innovation Council (EIC) and the same amount from private investors, the names of which are undisclosed. The startup also received a grant worth 2,5M from EIC.

Founded in Estonia in 2021 by Karl Pärtel and Rain Randsberg, RAIKU produces wooden springs, an alternative packaging material to plastic bubble wrap, paper, or cardboard. After RAIKU's packaging has been used, it can be turned back into nutrients. The technology of RAIKU’s packaging production allows the startup to increase its raw material volume by 15-20 times. For example, it turns 1m3 of wood into 20m3 of packaging material.

According to the company, they do not use chemicals while producing the material. Also, they consume less water and energy compared to the production of traditional packaging.

RAIKU will use the investment to develop the technology of packaging material, build the first factory, and scale the production globally. The startup plans to expand the team and increase the number of partners. 

In July 2023, RAIKU raised over €1,1M from Tallinn-based capital family office Kaamos, Estonian green company Vestman, Estonian Little Green Fund, and other private investors from Estonia and Finland.

EIC Accelerator offers startups in the seed and growth stages grants of up to €2,5M, which can be blended with equity investments from €0,5M to €15M. The equity financing is provided by the EIC Fund. In addition, all projects benefit from a range of services that provide access to expertise, and opportunities to network with corporates and investors.