Pulpex Limited, the sustainable packaging technology company, announced a £62 million Series D investment round led by the UK’s 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.
The fundraise will finance the construction of Pulpex’s first commercial-scale manufacturing facility near Glasgow, marking the NWF’s first investment in Scotland.
Pulpex has developed a fibre-based bottle solution free from hidden plastic, manufactured from sustainably sourced wood pulp designed to be recycled in the same way as paper or card in normal household recycling streams.
Its patented and scalable technology results in a recyclable and biodegradable end-product with a lower carbon impact versus current glass or plastic packaging formats.
Pulpex currently operates out of its existing R&D and pilot production facility at its headquarters in Cambridge, and has existing partnerships with some of the largest global FMCG brands, including Diageo, PepsiCo, Unilever and Kraft Heinz, through which it is developing bespoke products for launch.
The construction of the planned 50 million bottle per annum facility near Glasgow will create the UK’s first fibre bottle supply chain, creating 35 new jobs in Scotland.
National Wealth Fund CEO John Flint 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 commercialise. 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.”
Scott Winston, Pulpex, said: “Thanks to the National Wealth Fund, the Scottish National Investment Bank, our Pulpex team and to our stakeholders for their continued support.
“This investment will drive the decarbonisation 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.”
Anthony Kelly, Associate Director, Scottish National Investment Bank, said: “As an impact investor, focused on supporting projects that will deliver long-term economic and societal returns for Scotland, we are pleased to invest in Pulpex.
“We are excited to help scale its innovative, IP-protected, and more sustainable alternative to plastic and glass packaging. Basing its new centre in Glasgow will be an economic boost for the region.”
Lazard acted as financial adviser in relation to the Series D funding round.