Sustainable packaging technology company Pulpex announced that it has raised £62 million (USD$78 million) $78 million in a series D funding round, with proceeds to be used to scale production of its recyclable paper-based bottles, which can replace plastic and glass bottles.

Launched in 2020, UK-based Pulpex is an R&D collaboration between Pilot Lite and Diageo together with a group of leading global CPG companies including Unilever, PepsiCo, Castrol, Haleon, Estée Lauder and Kraft Heinz, committed to pioneering compostable and recyclable packaging that degrades readily in the natural environment and has a significantly lower carbon footprint solution relative to glass or plastic.

Pulpex has developed a first-of-its-kind technology that forms bottles from wood pulp using 100% renewable feedstocks from responsibly managed forests. The bottles can be recycled in regular household waste streams, the same way that paper can, the company said.  Pulpex currently operates out of an R&D and pilot production facility at its headquarters in Cambridge, England, and plans to use the new capital to build its first commercial bottle production facility near Glasgow, Scotland.

Pulpex CEO Scott Winston said:

“This investment will drive the decarbonization of the packaging sector using leading edge Material Bioscience to ensure this much-needed alternative to glass and plastic will deliver its ambition. Accelerated by the incredible business ecosystem that flourishes within Glasgow, this will be a visible shining star demonstrating the scalability of Pulpex technology for partners to adopt globally.”

The round was led by the National Wealth Fund (NWF) and the Scottish National Investment Bank. The NWF will cornerstone the round, committing 43.5 million in direct equity, with a £10 million co-investment from the Scottish National Investment Bank and the balance from existing investors. Lazard and Damus Capital acted as financial advisers in relation to the round.

John Flint, National Wealth Fund CEO, said:

“We need to recycle more and unlock the growth potential of the circular economy. That requires sophisticated, long-term investment, both in infrastructure and packaging innovation. Exciting technological advancements like Pulpex are a great example of that potential. But they need catalytic investment to scale and commercialize. Through financing Pulpex’s new facility in Glasgow, we will help remove barriers to future investment from private capital and lay the foundations for further growth.”