Exclusive: Greek startup Coffeeco Upcycle raises €715K to turn coffee waste into skincare and bioplastics

Up to 99% of coffee fruit is discarded as waste after espresso production, contributing to environmental pollution and carbon emissions. Globally, this amounts to over 23 million tons of coffee waste annually, with the majority ending up in landfills. There, it emits methane, a greenhouse gas 28 times more potent than CO2.

Coffeeco Upcycle SA transforms this coffee waste into high-value products through innovative, science-driven processes. Using their proprietary chemical-free extraction technology, they recover antioxidant-rich compounds and natural fibres from spent coffee grounds to create minimalist, high-performance skincare products and experimental bioplastics. Today, the company announced it has secured €715,000 in the first close of its €1 million Seed Round.



The round, backed by London-based boutique financial firm VDK Capital, welcomed new international investors. This strategic partnership strengthens global confidence in Coffeeco’s ability to scale and innovate. The round remains open for an additional three months, with €285,000 still available for mission-aligned investors.

As exclusively told to TFN, this brings the company’s valuation to €6.6M.This milestone enables Coffeeco to expand across Europe and the U.

S., while scaling both its flagship Auraskin product line and its revolutionary approach to circular, science-backed innovation. Marios Vlachogiannis, co-founder & COO, told us: “The new funding will primarily be used to expand Coffeeco Upcycle’s presence in key international markets, starting with the UK and the US.

Priority initiatives include building distribution partnerships with major coffee chains and speciality retailers, enhancing marketing activities for Auraskin, the company’s ‘skincare to go’ brand, supporting product certifications and regulatory approvals, and investing further in R&D to develop new applications for upcycled coffee materials.”From Espresso waste to skincare-to-goCoffeeco Upcycle was founded by Alexis Pantziaros and Marios Vlachogiannis, two chemical engineers passionate about innovation and sustainability. Pantziaros, from Cyprus, holds Bachelor’s, Master’s, and Ph.

D. degrees from the University of Patras. Vlachogiannis brings strong expertise in circular economy initiatives.

They met at a 2016 innovation competition and, sharing a vision to address global resource waste, co-founded Coffeeco Upcycle in 2021.The company emerged from a combination of personal initiative and market opportunity. In 2018, while still students, Marios and Alexis discovered that 95% of coffee fruit, a staple in daily life, was being wasted.

Where others saw refuse, they recognised potential. This insight sparked their mission to give spent coffee grounds a second life through their technical expertise.At Coffeeco’s core lies a simple premise: coffee waste is an untapped resource.

Through their proprietary processes, they extract antioxidant-rich compounds from spent grounds, creating functional, minimalist skincare products sold under the Auraskin brand directly in coffee shops.This innovative “skincare-to-go” model transforms cafés into beauty retail spaces. Auraskin now sells at over 90 locations across Greece, Cyprus, Madrid, London, Romania, and Boston, where it recently launched in the South End, proving successful even in -2°C winter mornings.

The company currently processes over 10 tons of spent coffee grounds monthly, converting them into bioactive compounds, skincare products, and experimental bioplastics. Planning to scale to 22 tons monthly, Coffeeco is building an efficient, vertically integrated supply chain from waste collection to finished product that minimises environmental impact.Extracting bioactive compounds and natural fibres from spent coffee groundsSpeaking about technology, Vlachogiannis told TFN: “Coffeeco Upcycle has developed proprietary technology that extracts bioactive compounds and natural fibres from spent coffee grounds through a clean, chemical-free process.

These high-value ingredients create the Auraskin skincare line, offering clinically validated benefits such as antioxidant protection, enhanced hydration, and microbiome support. Our upcycled extract has demonstrated exceptional microbiome-enhancing capacity in laboratory testing, setting it apart from generic ‘natural’ skincare ingredients.”What distinguishes Coffeeco is its complete vertical integration, from coffee waste collection to finished products, and its innovative placement of Auraskin in coffee shops, merging daily coffee culture with sustainable beauty.

“Our upcycled extract has shown exceptional microbiome-enhancing capacity,” says Vlachogiannis. “That’s where the real differentiation lies. It’s not just about being natural or sustainable — it’s about offering high-performance skincare that respects the skin’s ecosystem while closing the loop on waste.

”In the skincare sector, Auraskin competes with emerging sustainable beauty brands focusing on upcycled ingredients. However, its unique strategy of offering skincare “to go” directly in coffee shops, where the raw material originates, creates a new retail category with minimal direct competition. This approach taps into the $192 billion global speciality coffee market, creating new touchpoints for conscious consumers.

What’s next for Coffeeco Upcycle?Over the next three to five years, Coffeeco Upcycle aims to establish Auraskin as a globally recognised “skincare to go” brand in coffee shops and lifestyle locations. Plans include expanding across Greece, launching in the UK and US markets, diversifying into new skincare formats like hand creams and face mists, strengthening its sustainability and wellness narrative, and developing strong B2B partnerships with coffee chains. While bioplastics R&D continues, the primary focus remains Auraskin’s global rollout.

Coffeeco Upcycle SA’s cap table features leading figures in the food, sustainability, and startup sectors, including Konstantinos Konstantinopoulos, Giannis Theodoropoulos, and Konstantinos Lambrou. New international investors include Drake G. Behrakis, Vasilis Bacolitsas, and Alex Hadjipateras.

“Coffee and the Planet are two things very close to my heart,” says Alex Hadjipateras, “so I was delighted to find a way to combine both with my latest personal investment in Coffeeco.”VDK Capital plays a key role in this Seed Round, leading the entry of new international strategic investors and bringing expertise in scaling high-impact ventures. “We see immense potential in Coffeeco’s ability to redefine waste as a resource and build a globally scalable circular economy model,” says Vasileios Karatzenis, Founder at VDK Capital.

“Their scientific approach to upcycling and product innovation aligns with our mission to back transformative businesses that create both commercial and environmental value.”The post Exclusive: Greek startup Coffeeco Upcycle raises €715K to turn coffee waste into skincare and bioplastics appeared first on Tech Funding News..