Alusid has raised £500,000 in a pre-IPO equity funding round as the sustainable tile manufacturer steps up preparations for a potential flotation on AIM.
The fundraising values the Preston-based company at £10 million and attracted backing from existing investor Octopus Investments, through its Octopus AIM VCT plc and Octopus AIM VCT 2 plc funds, alongside the University of Lancashire.
As part of the round, existing investor Frontier IP converted £250,000 of loans into equity, meaning the group now holds a 36.16% stake in Alusid.
The funding will be used to support the business as it prepares for a potential IPO, while also accelerating the development of new product ranges, expanding its international distribution network and continuing to invest in its proprietary low-carbon manufacturing technology.
A key part of this technology is the company’s patented dry granulation process, which removes the need for spray drying and delivers significant reductions in both CO₂ emissions and water usage.
Alusid’s sustainable tiles typically contain more than 95% recycled materials.
Through its novel recipes and manufacturing processes, the company has developed products with one of the lowest carbon footprints in the global ceramics industry, positioning it strongly as demand grows for more sustainable building materials.
Alongside its core tile offering, the firm is developing new product categories designed to broaden its target markets and strengthen its proposition ahead of its flotation.
This includes innovation into moulded surface products such as shower trays, basins and architectural components, using a novel mineral and alkali geopolymer-based binder system intended to be produced from UK waste streams.
Market demand for the company’s products has continued to grow across both retail and commercial channels in the UK and internationally.
Topps Tiles has already launched two Alusid-made ranges, Principle and Mas, through its UK retail estate of more than 300 stores, with a third range, Ashton, scheduled to launch in early 2026.
It has also signed distribution agreements with Dutch sustainable materials specialist FRONT Materials BV, Italian firm 3D Wall Panels Italia and, most recently, Kakelspecialisten, one of Sweden’s largest tile suppliers and a subsidiary of Saint-Gobain. The company’s customer base also includes Starbucks EMEA.
“Closing this round marks another important step towards bringing Alusid to the public markets,” said Alasdair Bremner, Alusid CEO.
“We are seeing strong and growing demand from retailers and distributors across Europe for genuinely low-carbon tile ranges, and this investment will allow us to accelerate new product development and scale our distribution network with confidence.
“Our ambition is to demonstrate that sustainability and commercial performance can go hand in hand, and we are now well-positioned for the next stage of growth.”
Frontier IP chief executive, Neil Crabb, added: “Alusid continues to go from strength to strength as the strong support from investors for this funding round shows.
“The company is powering ahead internationally and in developing new branches of products as it continues to explore options for an IPO.”
London-headquartered venture capitalist Frontier has seen its share price hike within the first half hour of trading today since the news was released.
So far, it has risen by 6.45% to 16.5p. It currently has a market cap of £11.37m.