ÄIO Secures €1 Million Public Funding to Develop Fats and Oils for the Cosmetics Industries

AIO, an Estonian Biotechnology Company led by Nemailla Bonturi(Co-Founder and CEO), Petri-Jaan Lahtvee(Co-Founder and COO), Mary-Liis Kütt(CIO), Kristi Lember(Global Business Developer), Luísa Czamanski Nora(Head of Strain Engineering), Magdalena Koziol(Head of Cosmetics Development), Mateus Ribeiro da Silva(Head of Pilot Plant), Evelyn Lumi(Head of Quality Control Department), and Mariane Barrier(Head of Commercial), AIO has raised  €1 Million to develop greener alternatives to unethical and polluting oils in cosmetics products.

Founded in 2022 as a spin-off from TalTech, ÄIO converts industrial side streams into sustainable oils and fats using biomass and precision fermentation. Its process uses 97% less land and 90% less water than traditional palm oil production. For cosmetics, ÄIO offers a natural, eco-friendly alternative to palm, coconut, and petroleum-derived oils.

The company has received a €1M grant from Estonia's Applied Research Programme to fund a three-year R&D project focused on fermentation-derived lipids for personal care products. The total project budget is €1.8M.

ÄIO’s €1M grant comes as EU deforestation regulations tighten, increasing demand for sustainable, traceable palm oil alternatives. Its yeast-based oils provide consistent quality and avoid the climate and political risks tied to agriculture.

As the cosmetics industry faces stricter rules on PFAS and microplastics, fermentation-derived ingredients offer clean, compliant options. ÄIO’s versatile oils suit a wide range of products—from soaps to high-performance skincare and makeup—making it a strong partner for both global beauty giants and innovative indie brands.