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Sea6 Energy looks to raise $10 million to fund research

Biotech start-up, founded by alumnus of IIT Madras, has commercialised its first product based on seaweeds to Mahindra Group exclusively for nine years

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Mahesh Kulkarni Bengaluru
Bengaluru-based start-up Sea6 Energy Pvt Ltd, founded by alumni of IIT-Madras and incubated by the Centre for Cellular and Molecular Platforms, is looking to raise $10 million Series A funding to fund its research activities.

The company, started with $2 million raised from angel investors and assistance from the Department of Biotechnology, is engaged in the dev-elopment of scalable solutions to ena-ble energy independence for India. It has developed patented technologies which can facilitate large-scale cultivation of selected sea plants. It has just now commercialised a plant growth stimulant extracted from seaweeds and entered into a marketing agreement with the crop care division of Mahindra Agri Business, a Mahindra Group company.
 

“We are focusing on research in the area of biotechnology and have developed a plant stimulant based on seaweed. There are many other products in our research pipeline and to continue our research we are in need of additional funds. We are now in talks with several investors focussed on biotechnology and with right risk appetite to fund our research,” Shrikumar Suryanarayan, Co-founder, Chairman & CEO of Sea6 Energy told Business Standard.

He said the company hopes to close a deal in the next few months.

Sea6 Energy has developed and patented technologies that can facilitate large-scale cultivation of seaweeds. It has tied up with a large number of fishermen on the east coast to scientifically cultivate seaweeds. It is also in the process of developing bio-fuel based on seaweed and other products in the food, pharmaceuticals, nutraceuticals, agri business and renewable energy sectors among others.

“There is a huge shortage of seaweeds in India. Unlike in Indonesia where it is abundantly cultivated by fishermen, it is not so in our country. If we can rightly cultivate and make use properly, we can produce bio fuel to meet our entire requirement of fuel in the next few years,” Suryanarayan said.

He said the company has set up a manufacturing plant with an annual capacity of 400,000 litres per annum of plant nutrient at Tuticorin, which is being marketed by Mahindra Group under the brand ‘Jingo’. As per the agreement, Mahindra crop care division will market and distribute ‘Jingo’ in India. It will be priced at Rs 650 for a 750 ml bottle, said Vikram Puri, CEO, Mahindra Shubhlabh Services Ltd.

He said both companies have agreed for a profit-sharing formula from the sale of Jingo, which will be sold as a plant growth stimulant for a variety of crops like paddy, wheat, cotton, sugarcane, vegetables, tea and soyabean among others.

Jingo has been used for field trials by the University of Agricultural Sciences, Bengaluru, Indian Institute of Horticulture Research in Karnataka, and by Mahindra Group in Odisha, West Bengal and Punjab on a variety of crops. The usage of Jingo is said to have resulted in enhancement of yields by up to 40 per cent in paddy, while it had positive effect on tea plantations, Puri said.

Puri said the company is looking at a business of around Rs 650 crore in couple of years from the sale of Jingo.

It helps plants to proliferate its root system and increase the crop’s leaf index area that will enhance the photosynthetic activity and improve the quality of the crop, he added.

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First Published: May 15 2015 | 10:44 PM IST

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