The seaweed company Nordic Seafarm has secured SEK 25 million in funding from Ikea’s subsidiary, Inter Ikea Group, and the EU-funded Innoenergy. The funds will be used to expand the application of seaweed from food production to biomaterials.
“We see Ikea as a customer in the future,” says Nordic Seafarm CEO Simon Hilmersson.
Since 2016, Nordic Seafarm has been producing sugar kelp off Sweden’s west coast, specifically near Grebbestad.
“We’ve moved beyond the lab and pilot phases, now with a capacity of 100 tons and ongoing production and sales. The next step is scaling up to deliver the quantities required for larger customers,” says CEO and co-founder Simon Hilmersson.
In 2023, the company generated just under SEK 2.2 million in revenue, while net losses amounted to over SEK 12.4 million. Its customers are primarily producers incorporating seaweed into food products. A significant future revenue stream is expected to come from using seaweed as a material component. According to Hilmersson, this diverse focus shields the company from the wave of bankruptcies seen among food tech companies in 2024.
“We’re not a food tech company in the traditional sense but rather produce a climate-smart raw material that we refine and sell to other companies. Our primary focus moving forward is material production, where seaweed can replace synthetic polymers in plastics and textiles. Here, we’ll greatly benefit from the expertise of our new co-owners, and hopefully, Ikea will become a customer in the future.”
With the SEK 25 million raised from Inter Ikea Group and EU-funded Innoenergy, the company has now secured a total of around SEK 50 million in funding. Previous investors include Dan Sten Olsson, majority owner and CEO of Stena, the investment firm Viltor Ventures, and the Almi Invest investor network.
