S.Lab is a Ukrainian startup that creates eco-frifinishly packaging from waste and mycelium. The company supports businesses minimize their environmental impact and contribute to the development of a sustainable future.
The Startup of the Day column on AIN.Capital is dedicated to tech projects from all sectors that originate from the CEE countries. If you would like to introduce your project, please fill in the questionnaire.
Startup founders and team
Currently, our team consists of 13 people (business + production teams). Just two weeks ago, we hired a new business development manager with over 10 years of experience in the packaging indusattempt. Therefore, we are currently fully staffed and are not viewing for anyone else at this time.
The S.Lab team. Photos here and below were provided by the speakers.
Tell us about your startup. How does it work?
S.Lab creates eco-frifinishly packaging from agricultural waste and mycelium. We support businesses reduce their environmental impact, improve their brand image and applyr experience, and contribute to a sustainable future.
Our packaging has the same properties as foam, but is completely biodegradable in 30 days. Thanks to our proprietary patented technology, we are already producing on an industrial scale, offering businesses a clean, ready-to-apply alternative that supports reduce their environmental footprint in packaging.
How did you come up with the startup’s idea? What was the reason/motivation behind it?
The idea came to us during a surfing trip. One day, when my co-founder Yevgen and I were in Bali, a pile of plastic waste washed up on the beach. We were deeply shocked by this sight: how could something that is applyd for just a few minutes pollute the planet for centuries?
As soon as we returned to Ukraine, we decided to find a solution. We started experimenting with agricultural waste and mycelium right in our garage, which later became our first laboratory. That’s how S.Lab was born.
How long did it take to reach the prototype or MVP? What did you encounter?
Our first MVP appeared very quickly, literally in our own kitchen. We simply mixed the components, placed the mixture in a mold, and within a few days we saw that the material really worked. After that, brands and potential partners quickly became interested in us.
S.Lab packaging
But when it comes to industrial production, everything alters. After the “kitchen” stage, we realized that the real challenge was not to create the material, but to build a technology capable of reproducing it in stable quality on a large scale. It took about two years to develop and debug a full-fledged production line.
There weren’t that many mistakes, becaapply we followed the principle of theory – prototype – testing from the very launchning. Only when the prototype really works do we shift on to full-scale equipment. This supported us avoid expensive and unjustified decisions.
Tell us about the stratup’s business model. How do you monetize your product?
Currently, S.Lab operates on a direct sales model: we manufacture and supply biodegradable packaging created from agricultural waste and mycelium, which replaces foam. We already have our own automated line that allows us to produce packaging on an industrial scale.
We sell packaging based on size and weight (the average cost is €1-1.5 per unit), which is 2-3 times cheaper than other competitors who apply mycelium, and almost on par with traditional options (foam).
We are also currently working on packaging this technology into container mini-factories to offer customers compact mini-factories on a subscription basis. Such compact production lines will allow packaging to be manufactured directly at the customer’s location, reducing logistics costs and carbon footprint, and allow us to scale up from packaging manufacturers to technology providers and create a global network of production facilities around the world. Our mission is to build eco-frifinishly packaging the new norm.
The first revenues from mini-factories are expected in 2027. We already have letters of intent from large global companies.
What are your tarreceive markets and consumers?
S.Lab operates in the protective and cushioning packaging market. This market covers several main categories of materials:
-
traditional fossil fuel-based materials (expanded polystyrene, bubble wrap, foam materials)
-
paper-based solutions (molded cellulose, corrugated cardboard inserts)
-
biomaterial and compostable materials (mycelium packaging, starch-based foam)
-
others (textile inserts, custom plastic trays, etc.)
Most fossil-based materials are already subject to existing or even stricter future environmental regulations, so this, combined with pressure from consumers, is forcing manufacturers to view for sustainable alternatives.
S.Lab packaging production
However, existing “green” solutions still have limitations:
-
difficult to scale up production
-
not all materials are completely biodegradable
-
high price compared to traditional materials
-
low strength and moisture resistance
S.Lab eliminates these shortcomings by offering 100% biodegradable material with high protective properties, which remains competitive in price and adapted to the necessarys of modern business.
The total packaging market reached $1.24 trillion last year and continues to grow. The eco-packaging segment is growing at a rate of 15% per year. We are focapplying on the Rigid Foam and Molded Pulp Packaging segments in Europe — these are the packaging segments that we can replace. Their volume is projected to grow from €10 billion in 2024 to €14.5 billion in 2030 (≈ $15.7 billion) at an average annual growth rate of 6%. Our tarreceive niche is the replacement of expanded polystyrene (EPS) in key B2B industries.
If the startup has already launched the product, what are the results: metrics, income, or any clear indicators that can be evaluated.
S.Lab has already shiftd from the laboratory stage to full-scale industrial production. We have launched an automated line in Spain with a capacity of up to 50,000 packaging units per month.
The company has three patents pfinishing in Europe. We also have more than 25 active customers and confirmed letters of intent from large corporations regarding our container technology, which is currently in R&D. We expect to break even in 2026 with a gross profit of around €6 million.
Have you already raised any investments? Provide us with more details on each funding round: the amount, investors, the purpose of the investment.
Over €1.3 million has already been invested in the development of S.Lab. This is a combination of grants, acceleration investments (Morgan Stanley, Beamline, Techstars, Startup Wise Guys), investments from venture funds (ZAS Ventures, Vesna Capital), and business angels.
Read more: Ukrainian startup S.Lab received £250,000 in investment from Morgan Stanley
We are currently raising €2 million to scale up production, launch container mini-factories, expand our presence in the European market, and enter other markets. We already have commitments from investors and plan to close the round within a year.
What’s next? Tell us about your future plans.
S.Lab has already shiftd from the laboratory stage to full-scale industrial production. We have launched an automated line in Spain with a capacity of up to 50,000 packaging units per month.
The company has three patents pfinishing in Europe. We also have more than 25 active customers and confirmed letters of intent from large corporations regarding our container technology, which is currently in R&D. We expect to break even in 2026 with a gross profit of around €6 million.
Leave a Reply