Spinnova has recently attracted new financing and investments, stepping into the next phase of the company’s growth story. Developing the world’s most sustainable textile fibre, the company will ramp up its pilot factory in Finland. Spinnova is a sustainable fibre company, developing textile fibre directly out of pulp without harmful chemical processes.
Financing from the Finnish public funding agency Business Finland and OP Bank will support the factory investment. OP has granted Spinnova Innofin loan financing of €4.5 million guaranteed by the European Investment Bank, and Business Finland is providing a loan of €3 million, the company said in a press release.
Spinnova’s ownership base has also changed. VTT Ventures, who supported the company’s early steps, has given up their ownership according to their exit strategy. VTT has been replaced with two new investors, including venture capital company Maki, founded by the start-up mentor and investor, Ilkka Kivimäki. The other new investor is Sebastian Langenskiöld’s family investment company, Beata Domus.
“We’re excited to be involved in turning Spinnova into a new, Finnish export superstar. This investment combines high-level sustainability and huge potential; for good as well as for profits. Also, what we’re creating here is a concrete product that I would like to wear myself,” Langenskiöld said.
Spinnova’s majority shareholder is Brazilian cellulose company Fibria, who invested €5 million into the company in 2017. The development of the Spinnova fibre has exceeded expectations. In addition to Finnish design house Marimekko, Spinnova has joint product development underway with several other partners. The fibre innovation has raised wide interest from global textile brands, many of which have committed to challenging sustainability goals.
“Thanks to our financiers, starting the pilot factory and product development work are moving full speed ahead. Licensing the technology now being developed in Finland is our most likely future business model, so piloting the technology concept on an industrial scale is now our main priority,” Spinnova’s CEO Janne Poranen said. (GK)
Fibre2Fashion News Desk – India