Cosmetic Company, Äio Eyes, Set to Unveil Products in 2025 Utilizing Yeast-Derived Palm Oil Alternative Following Manufacturing Breakthrough
In the heart of Tallinn, a pioneering biotech firm named Äio is making waves in the industry. The startup has recently completed a significant milestone, producing a one-tonne batch of its sustainable alternative to tropical fats and mineral oils.
Äio's flagship product, Encapsulated Oil, is a versatile substance high in protein, fibre, and functional lipids. It finds its application in various sectors, including plant-based patties, baked goods, confectionery products, and cosmetics formulations.
The one-tonne production run, which took place between late 2025 and mid-2026, marks a significant leap from Äio's lab capacity and signals the startup's potential for scalability.
In the cosmetics industry, Äio's products - Encapsulated Oil, RedOil, and ZymaLipid Complex - are gaining traction due to their texture, high performance, and additional bioactive properties. The company is targeting this sector as its initial path into the market, having already engaged in discussions with personal care firms to incorporate its ingredients into various formulations.
While food applications are set to follow post-regulatory approval, Äio has already filed for novel food approval in the EU. The startup is also undergoing pre-engineering concept work for its facility, the location of which is yet to be finalised following negotiations with potential partners.
Äio's first full-scale production run of Encapsulated Oil represents a 300-fold increase from its lab capacity. The company is currently in the process of scaling up all three of its products.
The startup has raised €7.2M from investors to date, with the majority of funds coming from a funding round last year. Äio plans to begin fundraising again in a year's time.
In addition to private funding, Äio received €1M in grant funding from the state-backed Applied Research Programme in July.
Looking ahead, Äio is establishing partnerships with companies regarding feedstock supply, distribution, and offtake agreements. The company is also planning to launch its first cosmetic ingredient, ZymaLipid Complex, by late 2025, initially through B2B collaborations with selected brands.
Äio's Encapsulated Oil offers nourishing properties with additional bioactive benefits, acting as a natural alternative to mineral oils that can harm both the skin and the environment. As the world continues to grapple with sustainability issues, Äio's innovative approach to oil production could pave the way for a greener future.
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