Ketoinen files for bankruptcy in Kuopio after failed funding round

The Kuopio-based start-up Ketoinen, known for producing grain-free baked goods, has filed for bankruptcy. The company submitted its bankruptcy application to the North Savonia District Court on Tuesday. According to the entrepreneurs, the unexpected collapse of a funding round was the reason behind the bankruptcy.

Ketoinen had established a factory in Kuopio specializing in ketogenic-friendly, grain-free products, with production capacity aimed at distribution across the Nordic countries. Despite the sales doubling annually, the revenue was insufficient to cover investment and production costs, leading to a need for additional funding.

A new funding round was initiated in early 2023, with the company requiring an additional one million euros. Initially, they secured 600,000 euros, but they still needed another 100,000 euros to meet their goals. Entrepreneur Niina-Marika Lahnavik-Hoffren mentioned that they managed to raise 300,000 euros, leaving them just short of the target. With this funding, they could have sustained operations and expanded into the Swedish market.

Lahnavik-Hoffren explained that three investors unexpectedly pulled out at the last minute. She believes the business was very close to becoming self-sufficient and profitable. “The investment world is tough. It has been quite a chess game for the last three years,” she stated.

The company has received substantial feedback over the years for how its food products have positively impacted individuals dealing with severe allergies, celiac disease, diabetes, and epilepsy. Lahnavik-Hoffren is hopeful that someone will purchase the company from the bankruptcy estate and is eagerly awaiting the outcome. The company received encouraging messages from buyers at SOK and Kesko, noting their strong customer base and consistent product demand.