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NovaLabs Invests €3M in Automation for Supplement Production

Austrian supplement maker NovaLabs injects €3 million into advanced automation and machinery, significantly expanding capacity and workforce.

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Alvaro de la Maza

Partner at Aninver

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Key Takeaways

  • NovaLabs raised $3.0M.
  • Sector: Healthcare, Healthtech & Medtech, Manufacturing.
  • Geography: Austria.

Analysis

Austrian supplement manufacturer NovaLabs is significantly bolstering its production capabilities with a substantial €3 million investment earmarked for advanced automation and machinery. This strategic capital injection follows an earlier €2 million deployment into its Graz-Rudersdorf facility, underscoring the company's aggressive growth trajectory. The move is designed to meet escalating global demand for high-quality nutritional supplements, a sector experiencing robust expansion.

The company, which operates as a white-label producer for various brands, has demonstrated impressive financial performance. Since its inception, NovaLabs has seen its revenue climb from €1 million to a reported €14 million. Projections for the current year target €25 million, with the company currently exceeding its own forecasts by seven percent. This financial upswing is mirrored by a significant increase in its workforce, which has grown from 76 to over 100 employees, reflecting the operational scaling required to support its market penetration.

Co-founders and Managing Directors David Schweiger and Christian Gubik attribute this investment strategy to the explosive growth within the nutraceutical market. "The demand for everything from protein powders and collagen to vitamins and minerals is simply immense," stated the leadership duo. "We've established a reputation for quality manufacturing, and this latest investment is about strategically expanding our capacity to keep pace with this surging demand." NovaLabs specializes in producing powders, capsules, oils, and liquids for a diverse clientele.

The new capital will fund critical upgrades across its facilities. Two new capsule packaging lines are being installed at the Rudersdorf site, while the main Graz-Straßgang headquarters will receive several high-tech installations. Notably, a new automated filling machine will precisely dose powders and liquids into stick packs, a format experiencing high volume demand. Additionally, a stand-up pouch line for resealable powder packaging and a pick-and-place robot are being integrated to enhance efficiency and product presentation.

A key technological highlight is the acquisition of a 2,000-liter spherical mixer, reportedly the first of its kind in Austria. This cutting-edge equipment drastically reduces mixing times for complex formulations from 20 minutes to approximately 90 seconds. "The increasing complexity of supplement formulations demands precision in our mixing technology," explained Schweiger. "We're handling recipes that combine hundreds of kilograms of one ingredient with mere grams of another, and ensuring uniform distribution is paramount."

NovaLabs' growth is increasingly international, with approximately 50% of its revenue now generated outside Austria. Germany stands as its largest single market, accounting for about 40% of total sales. Products are also reaching Switzerland, Belgium, and France, with distribution partners extending the brand's reach to Dubai and China. "Our clients are expanding, and we are growing alongside them while also securing new contracts," noted Gubik. "Our focus is on building a production infrastructure today that can handle tomorrow's volumes." This expansion positions NovaLabs to solidify its ambition of becoming Europe's leading supplement producer.