LAGO closes financing facility for Koala Eco

LAGO has provided a new financing facility to Koala Eco, the Sydney-founded wellness and sustainability brand, to support expansion and retailer growth. The deal adds revolving credit and growth capital as Koala Eco scales its plant-based home and body care products in Australia and the U.S.

Why it matters: - The financing gives Koala Eco added capital to expand distribution without changing the brand’s focus on plant-based, non-toxic products. - The deal combines a revolving line of credit with growth capital, giving Koala Eco more flexibility to support operations and retail expansion. - For LAGO, the transaction extends its strategy of lending to lower middle market companies that need institutional credit solutions.

What happened: - LAGO announced it closed a strategic financing facility for Koala Eco on July 22, 2026. - Koala Eco is a consumer goods company founded in Sydney in 2017. - The company makes home, body and cleaning products with natural, plant-derived ingredients and pure essential oils. - Koala Eco’s founders, Jessica Bragdon and Paul Davidson, said the partnership will help the company grow at a larger scale while preserving what built the brand.

The details: - Koala Eco’s products are biodegradable, septic-safe and made without synthetic fragrances or harsh chemicals. - The lineup includes kitchen and bathroom cleaners, natural laundry washes, stain sprays, hand washes and body washes. - The company uses recycled, recyclable and refillable bottles, plus concentrates and glass, as part of its sustainability approach. - LAGO described the financing as including a revolving line of credit and a meaningful growth capital term loan. - Heather La Freniere, LAGO’s managing partner and COO, said the facility will support Koala Eco’s continued growth and expansion. - Koala Eco operates in Australia and the United States. - Retail partners include Whole Foods Market and Sprouts. - The brand also supports 1% for the Planet and the Critters Program.

Between the lines: - The transaction signals continued lender appetite for consumer brands with sustainability positioning and established retail traction. - Koala Eco is aiming to scale while keeping its eco-friendly brand identity intact, a balance that can matter in premium consumer categories. - LAGO’s focus on underserved lower middle market borrowers suggests the facility fits a broader strategy of providing non-commoditized credit solutions. - The company’s story and mission are closely tied to its founders’ personal experience, which may strengthen brand loyalty in wellness-focused markets.

What's next: - Koala Eco said the new capital will help the company expand to more retailers and continue its growth trajectory. - LAGO is expected to remain a financing partner as Koala Eco enters its next phase of development. - Koala Eco will continue marketing its products and company information through its website and social channels, including more information.

The bottom line: - LAGO’s financing gives Koala Eco the capital to scale a sustainability-led consumer brand while preserving its core product and mission focus.