Bioweg raises €16m to swap microplastics in cosmetics with bacteria-based alternative

Microplastics may be tiny, but they’re a big problem. From cosmetics to cleaning products, they’re everywhere and their pervasive presence in the environment has been linked to myriad health problems.

German startup Bioweg thinks it has found a way to wash them out of the system, and investors are buying in. The company just raised €16m in Series A funding to scale its biodegradable ingredients made from bacterial cellulose.

The round was led by French VC firm Axeleo Capital, with backing from the EIC Fund, NBank Capital, BonVenture, and angel investor Frank Jenner. The raise brings Bioweg’s total funding to €22m.

‘Greener and better’

Many cosmetic products contain tiny plastic particles that thicken, gel, or give a smooth texture, helping products like creams, scrubs, and shampoos feel and spread better.

“These microplastics are very good at what they do,” Prateek Mahalwar, Bioweg’s co-founder and CEO, tells Impact Loop. “So we knew we had to make something that wasn’t just greener, but better.”

Mahalwar says Bioweg’s biodegradable ingredient absorbs three times more oil, water, and polyoils than fossil-based alternatives. Those properties can affect how a cream feels on your skin, how a shampoo foams, or how long makeup lasts.

Tiny bugs, big beauty benefits

Mahalwar founded Bioweg in 2019 alongside Srinivas Karuturi. The startup takes byproducts from agriculture – like sugary molasses – and feeds them to bacteria, which turn the sugars into cellulose via a process called precision fermentation. The output from this step is then refined with green chemicals (those not made from fossil fuels) to make the final product, which is added to existing cosmetic ingredients.

The startup already runs a pilot site in Quakenbrück, north Germany, with a six-tonne annual capacity. With the new cash, Bioweg is building its first industrial-scale bacterial cellulose facility further south, near Cologne.

Competing on price

Bioweg searched far and wide for a site for its first factory.

“We looked at China, India, and South Korea, but the IP-protection [in these countries] just wasn't strong enough,” says Mahalwar. “We eventually settled for Germany where deep tech innovations are well protected.”

Picking Europe over East Asia, though, has made the whole operation more expensive, says the founder. To compensate, the factory, which is already in development, will be co-located with a major sugar producer, giving it easy access to feedstock while keeping costs down.

“We knew from the outset that we had to be cost competitive,” says Mahalwar. “You can’t charge a green premium anymore, it’s just not a sustainable business model.”

Regulatory boost

Bioweg is set to benefit from a EU-wide ban on intentionally-added microplastics, which is forcing industries – from cosmetics and home care to pharmaceuticals and agriculture – to scramble for sustainable replacements. The phaseout enters force next month.

Investors say the startup is in the right place at the right time. “Bioweg combines a compelling regulatory tailwind with a credible industrialisation plan and strong customer pull,” says Marc Lechantre, partner at Axeleo Capital.

Bioweg is already in discussions with major cosmetics brands, especially in France, says Mahalwar, declining to comment further. It’s also exploring the use of its bacteria-based ingredient in agriculture, as a seed coating, and as a food additive.