BIOWEG secures €16 million Series A to scale biodegradable alternatives to microplastics - Axeleo Capital

WEG, a German biotechnology company founded in 2019, has secured €16 million in Series A funding led by Axeleo Capital’s Green Tech Industry Fund to scale biodegradable alternatives to microplastics. The investment, announced on September 16, 2025, brings the startup’s total funding to €22 million and will fund its first industrial bacterial cellulose plant in Germany, accelerating commercialization across Europe amid tightening EU regulations phasing out fossil-based microplastics by 2028.

Funding Details

The round included participation from EIC Fund, NBank Capital, BonVenture, and seed investor Dr.-Ing. Frank Jenner. BIOWEG, co-founded by Dr. Prateek Mahalwar and Srinivas Karuturi, converts food-industry side streams like potato, beer, and sugar waste into high-purity bacterial cellulose via precision fermentation and green chemistry. It currently operates a pilot plant in Quakenbrück (up to six tonnes capacity) and a lab on Bayer Crop Science’s Monheim campus. CEO Mahalwar stated, “Today’s funding allows us to move decisively into industrial manufacturing and support customers transitioning away from microplastics.”

Strategic Use

This capital enables BIOWEG to transition from pilot to industrial scale, co-locating the new facility with a major German sugar producer for feedstock synergies and cost efficiency. Its portfolio—Micbeads for cosmetics (replacing PMMA/nylon), RheoWeg for rheology in personal/home care, and AgriWeg for seed/fertilizer coatings—offers drop-in, high-performance substitutes outperforming fossil polymers in sensory and functionality. As Europe mandates microplastic-free supply chains, BIOWEG addresses surging demand in cosmetics, agriculture, and pharma, supporting circular economy goals and reducing ocean/soil pollution.

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