Functional mushroom biotech KÄÄPÄ bags €900k investment to scale operations

Published: 15-Apr-2025

Through this investment, KÄÄPÄ Biotech will be better equipped to bring its range of functional mushroom extracts to businesses and consumers alike

Finnish functional mushroom nutraceutical developer KÄÄPÄ Biotech has attained €900,000 of investment from global fund manager, PeakBridge.

This money will contribute to KÄÄPÄ's plans to scale its business — investing in its cultivation and R&D capacity within the region. 

This follows the company's securement of a $2.5m investment from North American natural ingredients supplier, Applied Food Sciences (AFS).

Through this financial backing, KÄÄPÄ Biotech will meet consumer demand through its three divisions, which include: 

  • Nordic Mushrooms: B2B supplier of functional mushroom extracts 
  • KÄÄPÄ Forest: B2B cultivator of chaga cankers 
  • KÄÄPÄ Mushrooms: A B2C supplier focused on functional mushroom extract products 

Following the launch of Nordic Mushrooms in 2020, KÄÄPÄ Biotech opened a new mushroom growing facility in Paimio, Finland late last year, enabling the division to cater to the needs of supplement businesses across Europe and further afield. 

"The functional mushroom market is currently experiencing rapid expansion, so we're seeing huge interest from companies either looking to enter the market of expand their presence," commented KÄÄPÄ Biotech's CEO and co-founder, Eric Puro.

"Currently, we provide more than 180 companies across 20 markets with our functional mushroom ingredients. Through the investment from PeakBridge, we will drive a new phase of growth; continuing efforts to scale our business to match the increase in consumer demand," he added.

"Health and nutrition has always been a key investment focus for us, and in this space, functional mushrooms are emerging as a star ingredient," said PeakBridge's Seed Fund Managing Director (FoodSparks), Yoni Glickman.

"KÄÄPÄ Biotech stood out to us due to its unique extraction technology and clinically validated products. Their focus on growing their own mushrooms also ensures traceability, supply stability and consistent quality — all of which are critical elements in this fast-growing sector."

 

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