Algaia, a French company manufacturing algae-based products for the agriculture feed, personal care & nutraceutical industries, has raised €4 million ($4.7 million) in follow-on funding from its main shareholder.
Maabarot Products, the Israeli developer, manufacturer, and marketer of a wide range of advanced nutrition and health products for people and pets, invested the additional equity capital to support Algaia’s expansion of its production facility and innovation center located in Normandy, France.
The benefits of algae-based foods and supplements continue to generate headlines and consumer interest with the algae products market projected to reach $45 million by 2023 from $30 million in 2015, according to Credence Research.
The fund will also further expand the company’s new specialty algae extract production line in Brittany, France which will use new technology developed in-house over the past three years with €5 million of earlier investment. The new production unit will expand Algaia’s portfolio beyond traditional seaweed extracts, adding functional liquid products for the agriculture market, according to a press release.
The company will focus on using these new seaweed extracts for healthy lipids, proteins, pigments, and micronutrients. Some of those new molecules are demonstrating photoprotective, antioxidant, antimicrobial, immuno-stimulative or nutritional activities, according to the company.
AgFunder Co-Investment Fund III is now open for investment. Closing June 15, Spots are limited.
“We are expanding both our portfolio and our geographical presence,” said Fabrice Bohin, CEO of Algaia. “Innovative products and technologies are currently being developed for launch in the coming months. We also are strengthening our positions in the Americas where, as in Europe, we identified a growing interest in marine-derived ingredients. We are pleased to see our shareholders committed to Algaia’s growth plans and we look forward to continuing our growth both organically and via the acquisition of specialty marine-based companies.”
Algaia works with local fishermen to harvest brown algae just a few miles from its plant in Brittany to ensure a constant fresh local and sustainable supply of seaweed biomass for its products.
Algaia’s product portfolio currently includes Carrageenans, which can be added to food for texture or water retention as well as personal care products, and Alginates for heat resistant gel, ice cream thickening or pet food gelling agent. But the startup also manufactures bespoke products.