These replace harmful microplastics and acrylic polymers in cosmetics as well as petroleum-based coatings in fertilizers and seeds. In the food sector, they have developed a biobased, sustainably produced hydrocolloid for plant-based foods. By combining fermentation, materials science and molecular simulations, Bioweg develops biodegradable, scalable, sustainable solutions, reducing waste and supporting a circular economy that benefits both the environment and industry.
Founders Dr Prateek Mahalwar (CEO) and Srinivas Karuturi (COO) bring extensive professional experience to the company. Mahalwar holds a PhD in life sciences and has over five years of experience at EY (Ernst & Young), while Karuturi has an MBA and over ten years of experience at Daimler and Deutsche Bank. The two Indian-born founders met in the Stuttgart region through mutual friends and began discussing potential business ideas in the fields of sustainability and life sciences. Their shared vision eventually led them to participate in a biotech incubation programme organised by DSM, a Dutch chemical company, between 2018 and 2019. During the programme, they validated their science- driven concept to address microplastic pollution, performing product-market fit analyses and refining their prototypes. These activities laid the groundwork for the founding of Cellulosic Technologies (now Bioweg) in March 2019.
Since its inception, Bioweg has achieved several milestones. The company secured some start-up capital, relocated to Quakenbrück in Lower Saxony and established a pilot production plant. Early successes included generating revenue, hiring additional employees, and achieving a turnover of €100,000. In 2023, Bioweg entered into a strategic partnership with US-based biotechnology company Ginkgo Bioworks. The company has also received multiple innovation awards, including the Top 3 Sustainability Start-up Innovation Award 2023 from LVMH, the KfW Award Gründen 2023 and the Best Innovative Ingredient Award at the Cosmetics 360 in Paris. In November 2023, Bioweg began collaborating with Bayer to develop biodegradable seed coatings and formulation materials, making it the first start-up to join Bayer’s LifeHub in Monheim am Rhein.
In terms of funding, Bioweg is backed by two German business angels, and in 2020, it raised over €1 million in grants from NBank and other public institutions in Lower Saxony. In 2022, Bioweg was awarded €2.5 million in grant funding through the EIC Accelerator, along with €10 million in equity funding. The Series A funding round is scheduled for Q1 2024.
“We operate a B2B model primarily targeting medium to large companies in the cosmetics/ personal care sector that seek to transition from synthetic polymers to sustainable alternatives. While our current focus is on Europe, we aim to expand globally in the future,” says Karuturi about the company’s financing. BIOWEG is replacing petroleum-based chemicals with innovative bio-alternatives through synthetic biology, fermentation, materials science and green chemistry. By utilising waste and side streams the company creates highvalue ingredients, 100% biodegradable materials that outperform synthetic polymers, offering eco-friendly solutions that meet regulatory requirements.
The environmental impact of microplastics, particularly non-biodegradable polymers used in personal care products, poses significant risks to both ecosystems and human health. Mahalwar notes that the European Union’s 2023 ban on microplastics is accelerating the shift towards bio-based, biodegradable alternatives in the chemical and cosmetics industries. “Our ingredients are 100% animal- and GMOfree, globally scalable, and sustainably produced using only green chemicals,” Srinivas Karuturi adds and continues: “Our circular production is based on a zero-waste (inputoutput) fermentation process that uses the food industry’s waste and side streams as feedstock. Furthermore, we utilise Bioweg’s side streams for manufacturing consumer and home care products.”
The Bioweg process sources waste side streams from local industry, mainly from the agri-food industry in Germany and the Netherlands, reducing the carbon footprint and promoting a circular economy. These materials are used to produce bacterial cellulose via fermentation, which has numerous industrial applications. Their production processes are highly efficient, minimising waste, carbon emissions and energy consumption. Bioweg’s customer base includes small and large cosmetics manufacturers as well as specialty chemical distributors. Bioweg’s team of 18 highly skilled professionals sets the company apart. Co-founders Mahalwar and Karuturi, both second-time founders, bring a combined 30 years of scientific and business expertise to the table. Their R&D teams are led by scientists with over 40 years of international experience and their advisors offer valuable industry insights and networks.
Despite their successes, the company still faces challenges. Mahalwar acknowledges the difficulty in attracting and retaining skilled employees, given the competition from larger companies. “Managing finances becomes more intricate with increased revenue streams, expenses, and financial obligations. We deploy proper financial planning and management to sustain the growth,” he adds. Karuturi explained that another major challenge was adapting the product to accommodate a larger and more diverse user base while maintaining quality. He mentioned that most of these challenges were being addressed through effective planning and that the company was developing an employee engagement framework to focus on both employee retention and improving recruitment practices.
The company’s primary focus is on customerfinanced research projects, with an emphasis on rapidly bringing technologies and products to market. Bioweg also participates in publicly funded research collaborations with institutions such as the German Institute for Food Technology and the Fraunhofer Institute. “We are also working on addressing the problem of intentionally added microplastics in the agriculture sector. We are developing a new generation of seed and fertilizer coating polymer solutions to replace the non-biodegradable synthetic polymers and additives,” says Mahalwar.
Looking ahead, Bioweg plans to launch and commercialise its micro-powders and rheology modifiers for the personal and home care markets. The company aims to close its Series A funding round in 2024 and reach full production capacity at its pilot plant in Quakenbrück. “We are also working on staffing and equipping our application development centre in Monheim to address the major demand in application use case development,” concludes Karuturi.
