A Scottish start-up looking for a share of Europe’s £9 billion seaweed market has secured a six-figure investment.

Kaly Group has raised £300,000 in a funding round led by Tricapital Angels, with co-investment from Scottish Enterprise.

The business opened its first seaweed farm on the Isle of Skye this year and will use the cash injection to expand its operations and develop an integrated and sustainable seaweed supply chain along Scotland’s west coast.

Seaweed offers clean alternatives to plastics, cosmetics, pharmaceuticals and textiles, and can also be used in food, animal feed and fertilisers. The potential for seaweed farming to revitalise Scotland’s marine industries is also significant.

With full-scale processing facilities, the sector could create over 550 jobs across the Scottish supply chain, offsetting the decline of traditional fishing and marine industries.

By 2030, the European seaweed market is projected to reach £9 billion, with Scotland well-positioned to capture a near £2bn share because of its extensive coastline.

By adopting a community-first approach, Kaly collaborates with other marine stakeholders to ensure that seaweed farming benefits local communities and ecosystems alike.

It will now address challenges across the supply chain – from biomass cultivation to the production of high-value products – to support 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.”

Moray Martin, chief executive of Tricapital Angels, said: “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.”