ÄIO Secures €6.1M in Funding
Estonian startup Äio is making waves in the green-tech world, securing €6.1M ($6.8M) in funding to build a demo facility for its eco-friendly oils.
The company, led by CEO Nemailla Bonturi (estimated net worth around $5M), has developed an innovative process that transforms waste from the agricultural and woodworking industries into oils that can replace palm oil and animal fats.
Given the rise in demand for sustainable products, it seems they might be on the brink of something big—or at least something that doesn’t involve chopping down more trees for snacks!
The latest funding round was backed by big names like Voima Ventures, 2C Ventures, and Nordic Foodtech VC, with support from the EU-backed SmartCap Green Fund.
Nemailla Bonturi, founder of ÄIO said:
“Äio’s oils, produced from industrial residues, help reduce land use by up to 97% and water consumption by as much as 10 times compared to current palm oil and animal fat production. Additionally, the speed of oil and fat production through fermentation is 10 times faster.”
This is a major step for Äio, coming off a €1M boost last year, to ramp up its fermentation technology. Think of it as brewing beer, but instead of a hangover, you get sustainable oils that could transform the food and cosmetics industries.
By using a patented "red yeast" microbe, Äio creates fats rich in essential fatty acids, all while reducing land use by 97% and slashing water consumption compared to conventional palm oil production.
In an era where palm oil alone accounts for 40% of global oil production, contributing to deforestation and climate change, this feels like a breath of fresh (eco-friendly) air.
With their demo facility slated for completion by 2026, Äio hopes to tap into growing interest from major food and cosmetics players.
After all, who wouldn’t want to get rid of that pesky deforestation problem caused by palm oil—especially when it’s linked to wildfires in Indonesia and the destruction of habitats?
No word yet on whether the demo facility will offer free snacks, but we can dream, right?
While competition in the alternative fat market is heating up, with British firms like PALM-ALT and New York’s C16 Biosciences racing to develop similar tech, Äio seems well-positioned to make a splash.
And with the market for alternative fats projected to reach $4.5B by 2032, it looks like their yeast-powered approach could be in for some serious gains.
