Microplastic pollution has emerged as one of the most pressing environmental challenges, infiltrating industries from cosmetics to agriculture. BIOWEG, a German biotech startup, is stepping up with a solution that converts agricultural waste streams such as molasses and starches into biodegradable alternatives to these persistent microplastic pollutants using bacterial cellulose.
The company recently closed a €16 million Series A round led by Axeleo Capital, alongside investments from the EIC Fund, NBank Capital, BonVenture, and early seed investor Dr.-Ing. Frank Jenner.
The fresh capital will accelerate the build-out of Europe's first large-scale industrial bacterial cellulose plant located in Germany, marking a significant step toward phasing out fossil-based polymers.
Founded in 2019 by Dr. Prateek Mahalwar, who holds a PhD in Biology from the Max Planck Institute and has consulting experience at EY Parthenon, and COO Srinivas Karuturi, with a background spanning biotechnology, manufacturing, and financial services at Mercedes-Benz and Deutsche Bank, BIOWEG's mission is clear.
"We saw a clear opportunity to replace persistent, fossil-based polymers with biotech-made, biodegradable ingredients without compromising performance, starting with solid microplastics in cosmetics and then expanding into other formats and sectors. That's been our north star from day one," says Dr. Mahalwar in a conversation with TFN.
BIOWEG's proprietary, patent-pending, zero-waste precision fermentation process transforms low-value food industry by-products into high-purity bacterial cellulose.
Through green chemistry, this is refined into distinct product lines like RheoWeg (rheology modifiers), MicBeads (micropowders), AgriWeg (seed and fertiliser coatings), and HydroWeg (hydrocolloids for diverse applications).
The flagship RW100 rheology modifier delivers exceptional suspension stability, even at low dosages, allowing for the suspension of ingredients in shampoo at just 0.1%. Their MicBeads micropowders absorb oil and sweat three times faster than conventional microbeads and break down far more cleanly in the environment.
BIOWEG is collaborating with synthetic biology powerhouse Ginkgo Bioworks to refine fermentation strains and scale production effectively. Operations currently run out of a pilot facility with a roughly six-tonne annual capacity, but the new plant planned in Germany will be co-located with a major sugar producer to secure reliable feedstock and reduce costs.
Beyond microplastics, BIOWEG's materials aim to replace a broad spectrum of fossil-based synthetic polymers, including acrylates and polystyrene, which are widely used in cosmetics, personal care, and agriculture.
"In cosmetics alone, microplastics account for an estimated 301,000 tons per year in the EU, linked to roughly 2.4 million tons of CO₂ emissions. That's the kind of footprint we're working to remove," Dr. Mahalwar notes.
BIOWEG's competitors include established chemical giants like Dow and BASF, which produce synthetic polymers and polyethene microbeads, as well as firms such as CPKelco and Ashland, which specialise in modified plant-based cellulose or starches, and mineral-based ingredient suppliers like Imerys.
Yet BIOWEG's bacterial cellulose platform stands out by delivering polymer-level performance while boasting true biodegradability and adhering to sustainable, green chemistry principles, offering a scalable and circular solution that challenges well-entrenched incumbent materials.
Looking ahead, BIOWEG plans to transition from pilot-scale to industrial manufacturing, expand its product portfolio, and strengthen partnerships across Europe.
As Dr. Mahalwar summarises: "We're building a materials platform to help brands meet performance targets and phase out microplastics and fossil-based polymers, starting in cosmetics and expanding from there. Recognition from the industry has given us a boost, but the real milestone will be seeing these cleaner, biotech-made materials in everyday products."