Every year, more than 23 million tons of coffee waste are generated worldwide. The bulk ends up in landfills, where it releases methane, a greenhouse gas 28 times more harmful than carbon dioxide. Most people toss used espresso grounds without a second thought, but Coffeeco Upcycle SA sees them as a goldmine.
This sustainability-driven startup is revolutionising coffee waste upcycling through advanced, chemical-free extraction technology. By converting used coffee grounds into high-value products, Coffeeco is tackling both waste and climate challenges head-on.
Their flagship skincare brand, Auraskin, uses antioxidant-rich extracts and natural fibres pulled from spent grounds. The result? Minimalist, high-performance skincare that’s also eco-conscious. Additionally, the company is experimenting with bioplastics derived from the same waste stream, pushing innovation across sectors.
In a major development, Coffeeco Upcycle has raised €715,000 in the first close of its €1 million Seed Round. London-based VDK Capital led the round, bringing in new international investors who share the company’s mission. With this funding, Coffeeco’s valuation now sits at €6.6 million.
This investment will enable Coffeeco to expand across Europe and North America, scale Auraskin’s reach, and accelerate research and development. The round remains open for three more months, with €285,000 still available for aligned partners.
“The funding will help us grow into key markets like the UK and the US,” said Marios Vlachogiannis, co-founder and COO. “We’re focusing on strategic distribution partnerships with coffee chains and retailers, marketing support for Auraskin, product certifications, and further R&D to expand our product applications.”
Coffeeco was founded in 2021 by chemical engineers Alexis Pantziaros and Marios Vlachogiannis. The duo met at an innovation competition in 2016 and bonded over a shared passion for sustainability. While still students, they discovered that 95% of the coffee fruit—despite its widespread use—was going to waste. That insight became the catalyst for Coffeeco Upcycle.
Coffeeco operates with a unique business model. It collects spent coffee grounds, processes them using its proprietary, chemical-free extraction method, and creates bioactive ingredients. These are then used to make Auraskin products, which are sold directly in coffee shops—often the very places the waste originated.
This circular model has real-world traction. Auraskin is now available in over 90 coffee shops across Greece, Cyprus, Spain, Romania, the UK, and even Boston in the U.S., where it launched successfully despite harsh winter conditions. Customers can pick up “skincare to go” alongside their morning espresso, blending self-care with sustainability.
Currently, Coffeeco processes over 10 tons of coffee waste monthly and plans to more than double that to 22 tons. This growth requires an efficient, vertically integrated supply chain, which the company is actively building—from waste collection to finished product.
Vlachogiannis explained, “Our clean tech process yields powerful bioactive compounds that offer clinically proven skincare benefits. These include antioxidant protection, hydration, and microbiome support. Our extract performs significantly better than standard natural ingredients in lab tests.”
Coffeeco’s innovation doesn’t stop with skincare. Though Auraskin remains the core focus, the team is also developing bioplastics from the same upcycled material. This could open doors to sustainable packaging solutions in the future.
What truly sets Coffeeco apart is its retail strategy. By placing skincare products in coffee shops, they tap into the booming $192 billion global coffee market. This approach not only reduces packaging and transportation emissions but also introduces sustainable skincare to a broad, eco-conscious audience.
The startup competes with other upcycled beauty brands, but its direct-to-consumer model and coffee shop integration give it a clear edge. It’s not just a beauty brand—it’s a movement merging sustainability, daily rituals, and science.
Over the next five years, the team plans to scale Auraskin globally, expand its product range to include hand creams and face mists, and strengthen its presence in lifestyle hubs and cafés. Bioplastics R&D will continue, but skincare will remain the company’s flagship growth driver.
Backed by prominent figures from the food, sustainability, and startup worlds—including Konstantinos Konstantinopoulos, Giannis Theodoropoulos, and Konstantinos Lambrou—Coffeeco is building strong momentum. New investors like Drake G. Behrakis and Alex Hadjipateras bring international credibility and enthusiasm. “Coffee and the planet are close to my heart,” said Hadjipateras. “Coffeeco brings both together beautifully.”
VDK Capital Founder Vasileios Karatzenis added, “Coffeeco’s scientific approach to upcycling makes them a standout. They’re building a scalable circular model that delivers both profit and purpose.”
With its combination of sustainability, science, and smart retail, Coffeeco Upcycle is on a mission to give coffee waste a second, more beautiful life.
