Kelpi secures funding to scale up seaweed-based barrier coatings for paper packaging

Kelpi has secured £4.35 million to bring its groundbreaking biomaterial technology to market. This round of funding will enable Kelpi to scale up operations, grow the team and conduct scaled pilots to chart its path to market.

The funds will be used to progress manufacturing pilots and gain regulatory approval for its proprietary paper and card coatings. The funding will also be used to continue commercial rollout, with the company already having R&D contracts with a number of suppliers. These include L’Oréal, Diageo, and Waitrose and their tropical fresh fruit supplier Blue Skies.

Kelpi’s biomaterials perform as well as or better than plastics, have unique water-repellent properties and are resistant to greasy or acidic foods. Kelpi uses only renewable raw materials, sourcing sustainably farmed seaweed. This ensures a positive impact on the environment, as the seaweed absorbs large amounts of CO2 as it grows, reducing ocean acidity and providing a rich environment for fish.

Kelpi’s equity financing was led by Blackfinch Ventures, with participation from Green Angel Ventures, Kadmos Capital, QantX, Evenlode Foundation and South West Investment Fund. It included follow-on investments from Bristol Private Equity Club (BPEC), One Planet Capital and private angel investors. Kelpi initially sought £3 million in equity investment and ultimately raised £4.35 million ($5.5 million), which is a huge coup for Kelpi.

“This landmark investment enables Kelpi to scale up our pioneering work and bring to market a packaging material that has already been chosen by customers,” said Neil Morris, CEO of Kelpi. "Kelpi can now play a key role in ending our reliance on fossil fuels to manufacture single-use packaging, thereby eliminating a major source of plastic pollution. We are delighted to have the support of investors such as Blackfinch and Green Angel Ventures, which allows us to accelerate our groundbreaking work."

Dr. Reuben Wilcock, Head of Ventures at Blackfinch, said, "In our view, Kelpi is a powerful combination of scientific innovation and extensive entrepreneurial experience. Their technology has huge commercial potential and we are excited to support the company to scale it up and bring it to market."

Cam Ross, CEO of Green Angel Ventures, said, "We have always been impressed by Kelpi's team and technology, and their pioneering approach to developing biopolymers using renewable feedstocks such as seaweed. At scale, Kelpi's approach will play an important role in reducing reliance on fossil fuels, combating climate change and impacting plastic pollution."