Usage of seaweeds as a functional food/food ingredient is very limited due to paucity of scientific information about variations in the nutritional composition of seaweeds under diverse climatic conditions. Sargassum wightii and Ulva rigida seaweeds are found abundantly on the Southern Indian coastline and were thoroughly evaluated in this work. Crude fiber and lipid of S. wightii were higher (24.93 ± 0.23% and 3.09 ± 0.41%, respectively) as compared to U. rigida; however, U. rigida had higher crude protein content (27.11 ± 0.62%). Evaluation of mineral and CHNS content indicated that the concentration of potassium, magnesium, and calcium was 1.36 ± 0.08 mg/g, 8.39 ± 0.80 mg/g, and 14.03 ± 3.46 mg/g, respectively, that was higher in the S. wightii, whereas U. rigida contained higher value of iron, carbon, and sulphur (0.70 ± 0.13 mg/g, 37.72 ± 4.63%, and 2.61 ± 0.16%, respectively). Swelling capacity (19.42 ± 0.00 mL/g DW to 22.66 ± 00 mL/g DW), water-holding capacity (6.15 ± 0.08 g/g DW to 6.38 ± 0.14 g/g DW), and oil-holding capacity (2.96 ± 0.13 g/g DW) of U. rigida were significantly (
p
<
0.05
) higher as compared to S. wightii. It was observed from DSC thermograms that S. wightii can be safely processed for food formulations even at a temperature of 134°C. The thermograms also revealed changes in the sulphated polysaccharide (fucoidan) profile due to the presence of hydroxyl and carboxyl groups with denaturation of proteins. TGA of S. wightii and U. rigida showed degradation temperature within the range of 200–300°C due to divergent polysaccharide compositions. FTIR spectroscopy suggested the presence of phenolic groups in both seaweeds (at 1219 cm−1). Results of the study suggested that the manufacturing of functional food products from seaweeds could be beneficial and may aid in social upliftment of cultivators/fishermen.