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Elea & Lili raises €2.5M for bio-based diaper material

Finnish startup Elea & Lili has raised €2.5 million to commercialize a cellulose-based superabsorbent material that replaces fossil-based plastics in diapers and agricultural products.

The company spun out of VTT Technical Research Centre of Finland with technology backed by over a decade of biomaterials research. VTT transferred the patents and intellectual property to the newly formed company.

Elea & Lili’s Cellulose Super Absorbent is biodegradable and microplastic-free. It targets the last non-biodegradable component in modern diapers: superabsorbent polymers made from fossil fuels. Around 170 billion diapers are produced globally each year, generating nearly 40 million tons of waste.

The material is made from cellulose and matches the absorption performance of conventional polymers. It works with existing diaper production lines and has passed safety and skin compatibility testing.

Lifeline Ventures led the seed round, with participation from Ikorni Invest and Baltiska Handels Sverige.

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Agriculture represents an equally important market. Farmers currently mix fossil-based superabsorbent polymers into soil to retain water and improve nutrients. This leaves permanent plastic residues in farmland. From 2028, EU regulation will restrict fossil-based plastics that persist in soil.

“In both markets, absorbent materials are mission-critical components – and today they are fossil-based,” said Tatu Miettinen, CEO and Co-founder. “We are replacing them with a scalable biomaterial.”

The global diaper market is projected to reach $141 billion by 2030. The funding will scale pilot production, advance industrial validation, develop commercial products and expand the team.

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