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Woola snaps €2.5M to make wool packaging a new norm

Estonian startup Woola secures €2.5 million in funding to transform underutilised sheep wool into an eco-friendly alternative to plastic.

In an era where plastic’s environmental toll is increasingly scrutinised, a bold Estonian startup, Woola, is introducing green packaging from wool. Led by Anna-Liisa Palatu, the company just raised additional €2.5M.

Woola is using sheep wool to create a sustainable alternative to plastic packaging. They aim to transform 200,000 tonnes of discarded wool into a solution for the massive amount of plastic packaging that is produced each year. This not only helps address the issue of plastic waste, with only a small percentage being recycled, but also gives new value to a previously overlooked natural resource. Many farmers simply burn the precious wool, unable to find a better use for it. Woola takes different approach — “low standards” for the quality of wool but very high standards for where the wool comes from, as the company explains.

The recent infusion of funding, ked by Metaplanet and supported by Future Ventures and Lemonade Stand, speeds up this transformation. “At Woola, our mission transcends beyond merely replacing fossil fuel-based products. We are crafting protective woolen packaging that not only functions effectively but also adds an aesthetic value,” says Anna-Liisa Palatu, Woola’s CEO and co-founder.

Woollen envelope by Woola

Since its inception in 2020, Woola has primarily focused on reinventing bubble wrap for the ecommerce sector. However, the company is now extending its innovative woolen packaging to the luxury goods domain, garnering attention from industry giants. Notably, two houses of the LVMH Group have already integrated Woola’s sustainable packaging solutions, with one participating in a circular pilot program.

LVMH Group has committed to eliminating virgin fossil-based plastic packaging by 2026, aligning perfectly with Woola’s sustainable ethos. Woola’s efforts were recognized earlier this year when it clinched the LVMH Innovation Award in the “Sustainability and Greentech” category and became part of the Group’s business accelerator, La Maison des Startups.

Another important note is that backing Woola’s vision is Metaplanet, an investment fund led by Jaan Tallinn, co-founder of Skype. Metaplanet, known for its investments in transformative companies like SpaceX and DeepMind, sees Woola as a beacon of simple, yet profound innovation. “Woola exemplifies the beauty of simplicity,” says Rauno Miljand, Managing Partner at Metaplanet. “It’s about rescuing a natural resource and enabling companies, from ecommerce giants to leaders in aesthetics, to achieve their sustainability goals.”

If you’re passionate about sustainable e-commerce – get in touch via our e-Consulting service — and maybe you can catch a ride on Estonia’s next unicorn.

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