Seadling Launches New Malaysia Facility to Scale Functional Seaweed Ingredients Production

By Agroempresario.com 

Seadling, the innovative biotech startup specializing in seaweed-based functional ingredients, has officially launched its second processing facility in Sabah, Malaysia. This expansion follows a successful $1 million seed funding round co-led by AgFunder, The Yield Lab Asia Pacific, Toyo Seikan Group, Katapult Ocean, and KUL Loesningar 3, enabling the company to significantly increase production capacity and boost its presence in the blue economy.

The new facility will increase production from the pilot factory’s current one ton per month to five tons per month, allowing Seadling to meet growing demand from the pet food industry and prepare for future expansion into human nutrition products. The company collaborates directly with local seaweed farmers in Malaysian Borneo, providing seedlings of Elkhorn Seamoss (Kappaphycus sp.) grown initially in land-based hatcheries. These farmers cultivate the seaweed to maturity, after which Seadling applies a proprietary fermentation process to enhance oligosaccharides—known for gut-health benefits—and Vitamin K2, which supports cardiovascular and bone health.

Seadling’s founder, Simon Davis, highlights the potential for improving yields by deploying faster-growing seaweed strains. “We’ve developed varieties that grow two to three times faster than traditional strains, enabling massive productivity gains for local farmers and the regional blue economy,” he said. The expansion not only benefits Seadling but also aims to empower thousands of small-scale seaweed farmers who have cultivated these waters for generations.

The global seaweed market has tripled over the past two decades, largely driven by Asian aquaculture. Southeast Asia alone holds immense potential, with estimates by Standard Chartered Bank suggesting the blue food economy in the region could unlock $15 trillion in value by 2050. Industries from food and pharmaceuticals to cosmetics and crop protection are increasingly integrating seaweed-based ingredients for their natural health benefits and ability to sequester nitrogen and improve biodiversity.

The company’s recent soft launch event in Sabah, officiated by YB Datuk Phoong Jin Zhe, Minister of Industrial Development and Entrepreneurship Sabah, was attended by representatives from the Sabah Fisheries Department, Malaysian Cocoa Board, and Universiti Malaysia Sabah (UMS). This event underscored the strong government support for Seadling’s mission to drive sustainable aquaculture and economic development in the region.

Currently, Seadling’s fermented seaweed ingredients are primarily used in pet food products. The company anticipates receiving GMP+ certification by the end of 2026, an international standard for quality assurance in animal feed supply chains. Beyond pet nutrition, Seadling also offers a liquid biostimulant product that enhances plant defenses against leaf and root diseases, showcasing its commitment to sustainable agriculture.

Simon Davis views pet food as an important entry point to the broader agrifood market. “The ingredients we develop for cats and dogs can easily be adapted for other animals and eventually humans,” he explains. Partnerships with global companies like Nestlé, Thai Union, and Mars—who have divisions in both pet and human food—position Seadling well for future growth. The startup plans to introduce seaweed-based ingredients for human consumption by 2027, alongside geographic expansion into markets such as India and Thailand, where seaweed products are rapidly gaining traction.

As demand for clean-label, functional, and sustainable ingredients continues to rise worldwide, Seadling’s approach—leveraging fast-growing, pesticide-free aquatic plants and proprietary fermentation—puts it at the forefront of the seaweed innovation wave.