Estonian biotech startup ÄIO secures €1M grant to accelerate development of sustainable oils for cosmetics
ÄIO, an Estonian biotechnology company developing sustainable, non-animal fats and non-vegetable oils through innovative fermentation processes, has secured €1 million in funding. The funding came from a grant from the Estonian government-backed Applied Research Programme (RUP). The capital will help to accelerate development of safer and more ecological alternatives to traditional oils used in cosmetics and chemical industry applications.
About ÄIO
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ÄIO Tech OÜ, founded in 2022 by TalTech bioengineers Petri-Jaan Lahtvee and Nemailla Bonturi, is an international team of 16 people working from Estonia, Brazil, Poland, Armenia, and Italy.
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The startup has developed a unique method to reduce the food industry’s reliance on harmful animal fats, palm oil, and vegetable oils. The process uses specialised yeast to transform by-products from wood and agricultural processes into food-grade fats and oils.
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With over 120 partners, the company is developing innovative products using industrial residues or testing its oils and fats.
“This grant represents more than funding, it’s validation from the Estonian government that our technology can fundamentally reshape how cosmetics ingredients are produced. We’re now ready to show we can scale that impact on the international stage, bringing smarter, more sustainable ingredient alternatives to an industry that touches the everyday lives of all of us. We’re excited to start commercializing our innovation and to collaborate with forward-thinking beauty and personal care brands around the world,” says Nemailla Bonturi, Co-founder and CEO at ÄIO.
Investment details
The funding comes in the form of a grant from the Estonian government-backed Applied Research Programme (RUP), organized by the Estonian Business and Innovation Agency (EIS).
The investment will support ÄIO`s three-year research and development project focused on microbial fermentation-derived lipids and their derivatives, specifically for use in cosmetic and personal care ingredients.
Read more: ÄIO received €6M investment to build its demo plant
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https://en.ain.ua/2025/07/22/aio-secures-eur1m/