Estonian startup Cuploop raised two million euros – SmartCap Green Fund among the investors
The greentech company Cuploop which develops the technology for the circulation of reusable packaging, raised two million euros from investors, among which were SmartCap Green Fund, the Danish impact investment fund Footprint Firm and Estonian business angels.
Cuploop’s mission is to popularize reuse and employ automation to make it resource- and cost-effective. The company focuses on making the return of reusable packaging as easy and convenient as possible for the end user, just like in the case of using disposable packaging.
According to SmartCap board member and fund manager Sille Pettai, the goal of Green Fund investments is to support the growth of companies that develop technologies and solutions aimed at solving climate issues.
“The technology being developed by Cuploop directly contributes to the achievement of one of the priority climate goals of the European Union: it helps to establish the prerequisites for the transition to the circular economy, extending the life of the packaging, as well as the development of the necessary infrastructure both here and on international markets. The company has the potential and a clear plan – all this proved to be important when making the investment decision,” explained Sille Pettai.
Lauri Luik, the CEO and co-founder of Cuploop, said that reusable solutions are becoming increasingly more common all over the world, and that disposable packaging will soon quietly become a thing of the past: “Even if it is a single-use packaging that breaks down in nature, its use is irrational and resource-intensive compared to a packaging that can be reused dozens or even hundreds of times”. In the coming years the volume of reusable packaging in the world will increase significantly, but the necessary infrastructure to manage it is still lacking. According to Luik, Cuploop’s technology helps collect reusable packaging quickly and conveniently and transfer the deposit money back to the customer’s bank account.
Estonian business angels (EstBan) were the first to join the investment round, while the largest investment was made by SmartCap through the Green Fund’s direct investment program and by Footprint Firm with Danish roots, which makes impact investments.
“It is really nice to see SmartCap Green Fund as an investor. This fund was created to improve the availability of venture capital for companies developing green technologies,” said Christopher Juul, the chief technology officer and co-founder of Cuploop, expressing his satisfaction with the investment made possible with the support of the Green Fund. According to Juul, Cuploop’s experience demonstrates that SmartCap Green Fund’s investment principles consider the problems and needs of local greentech start-ups.
With the funds raised, Cuploop plans to improve the reliability of its technology and develop a market-ready product. The growth rate and production capacity will also be increased to meet the growing market demand. The company cooperates with reusable packaging operators in Estonia, such as Eesti Pandipakend and GreenCup. Cuploop has also initiated pilots and projects with major international companies in the Netherlands, Spain, Austria, Denmark, and Lithuania, where it wants to expand quickly together with its partners.
SmartCap Green Fund is financed by the European Union NextGenerationEU Recovery and Resilience Facility (RRF) funds.