Kaly Group nets £300,000 to scale seaweed business

A Scottish seaweed start-up is making waves in Europe’s £9 billion seaweed market after securing a six-figure funding boost to expand its operations and develop a sustainable supply chain.

Kaly Group, which launched its first seaweed farm on the Isle of Skye earlier this year, has raised £300,000 in a funding round led by TRICAPITAL Angels, with co-investment from Scottish Enterprise. 

Bosses say the investment will enable the company to “unlock the full potential of seaweed farming” by “taking critical steps” to scale up operations along Scotland’s west coast, tapping into the growing demand for sustainable alternatives in industries such as plastics, cosmetics and textiles.

Moray Martin, chief executive officer of TRICAPITAL Angels, said: “We are proud to back this exciting and innovative business as it seeks to establish a large-scale, profitable, and environmentally sustainable seaweed-based supply chain to support the food, nutrition and chemicals industries.

“There is growing investor interest in the blue economy and our angels are enthusiastic about seaweed’s potential for creating economic growth in coastal and rural areas, delivering environmental and health benefits, and producing a diverse range of lower-carbon products.”

Kerry Sharp, director of entrepreneurship and investment at Scottish Enterprise, added: “This investment underscores our commitment to using our world-class innovation capabilities to increase the number of ambitious companies scaling up in Scotland. 

“By helping these companies grow, we aim to create high-quality, high-value jobs and empower them to compete and lead in global markets.”

The European seaweed market is expected to hit £9 billion by 2030, with Scotland poised to claim nearly £2 billion of that, thanks to its extensive coastline. 

The sector also holds potential to create over 550 jobs in Scotland, providing a vital boost to communities affected by the decline of traditional marine industries.

Kaly is committed to a community-first approach, collaborating with local marine stakeholders to ensure its seaweed farming benefits both people and ecosystems. The company aims to address challenges across the supply chain, from cultivation to processing, to unlock the scalability of the UK’s seaweed sector.

Daniel Hillman, co-founder of Kaly Group, said: “Kaly’s vision is to unlock the full potential of seaweed farming in Scotland, creating a sustainable supply chain that benefits local communities while driving economic and environmental gains.

“We are thrilled by the continuing support from TRICAPITAL and Scottish Enterprise, which will help us take critical steps toward scaling this exciting industry.”

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