A growing number of investment rounds are bringing sustainability-centric endeavors and more often than not, sustainability-focused tech, to the fore, as consumers and shareholders, alike, continue to focus on the sizable role that retail (including fashion industry) plays in the larger climate crisis. With rising consumer awareness and resulting demands for action and transparency on this front, investors increasingly taking environmental, social, and governance (“ESG”) factors into account when making decisions, and lawmakers across the globe pushing for climate-centric legislation in light of rampant greenwashing, we have compiled a (running) timeline of funding and M&A to provide a broad overview of sustainable investments in fashion and the broader retail space, and shed light on what the trajectory of this segment of the market looks like more generally …
Aug. 7, 2024 – Under Armour Acquires UNLESS COLLECTIVE
Under Armour, Inc. has acquired UNLESS COLLECTIVE, INC. in a deal that was finalized this week. The terms of the acquisition have not been disclosed. Co-founded in 2020 by adidas veteran Eric Liedtke, who will join Under Armour as its Executive Vice President of Brand Strategy, Unless Collective touts itself as “the world’s first all-plant, zero-plastic regenerative fashion brand.” Under Armour said in a statement that Liedtke will be “globally accountable for amplifying Under Armour’s brand identity and storytelling, its comprehensive strategic planning process, and executing transformational initiatives that accelerate growth for UA while continuing to lead and curate, UNLESS.”
Jul. 9, 2024 – Zara-Owner Inditex Takes Stake in Galy
Inditex has taken a stake in Galy, the Boston-based sustainable agriculture startup. While the terms of the deal have not been disclosed, Inditex CEO Oscar Garcia Maceiras said that it comes in furtherance of the Spanish retail giant’s “broader strategy to support the sustainable economy,” noting that Galy’s development of “an innovative process to produce cotton in laboratories from plant cells … is a groundbreaking method [that] aims to revolutionize cotton production, potentially reduce environmental impact.”
Jun. 4, 2024 – Altor Acquires Renewcell
Sweden-based investment firm Altor has acquired the assets of Renewcell, the Swedish cotton textiles recycling company that filed for bankruptcy in February 2024. The terms of the deal have not been disclosed. “This acquisition marks a new chapter for Renewcell, now renamed Circulose,” Renewcell stated on its website. “With Altor’s ownership, there is secure financing for the future of Circulose, ensuring that the company’s pioneering cotton recycling technology continues to thrive on a global scale.”
May 30, 2024 – (Re)vive Raises $3.5M in Seed Round
(Re)vive has raised $3.5 million in a Seed round led by Equal Ventures and Hustle Fund with participation from Banter Capital, Coalition Operators, Mute VC, Veronica Chou, Charge VC, Everywhere VC, and Hyphen Capital. The New York-based company offers a “pioneering solution [aimed at] addressing the challenges of unstockable and returned inventory for future-minded brands.” Fashion brands are “grappling with mounting operational costs associated with processing, storing, and disposing returns, which can amount to as much as $15+ per item,” said Allison Lee, founder and CEO of (Re)vive. “However, with a growing demand for sustainable fashion from consumers, we see a huge opportunity for future-minded brands to leverage their once-disposed, damaged product into a coveted item.”
May 23, 2024 – Syre Raises $100M in Series
Syre has raised $100 million in a Series A round led by founding investor TPG Rise Climate, which was joined by an additional investment from founder H&M Group, as well as Giant Ventures, IMAS Foundation, Norrsken VC, and Volvo Cars. The Stockholm-based textile impact company will use the new funds to finance the construction of its blueprint plant in the U.S., which will be up and running later this year, as well as preparations to establish the company’s first two gigascale textile-to-textile recycling plants. “I am thrilled that some of the most ambitious investors globally have joined our quest to lead the great textile shift. It’s inspiring to see their commitment to drive the green transition of the textile industry, across our key target industry verticals apparel, automotive, and interior,” says Dennis Nobelius, CEO of Syre.
May 22, 2024 – Silana Raises €1.5M in New Round
Silana has raised €1.5 million in a new funding round led by SOSV with participation from the HAX accelerator, OÖ HightechFonds, tech investor Material V, waterdrop founders Martin & Henry Murray, textile sustainability expert Yoobin Jung, and Sequoia Scout and former N26 CGO Alexander Weber. The Michael Hofmannrichter, Anton Wohlgemuth, and Michael Mayr-founded company will use the new funds to accelerate development of its sewing robot, with the aim of delivering the first machines next year.
Vienna-based Silana says that its “solution to the fashion industry is the full automation of the sewing process,” stating that it has developed “the first and only robot that fully automates the outdated, manual and cost-intensive sewing process,” which will allow for “automation of the entire value chain, from the roll of fabric to the finished garment – without a single human intervention. This technological innovation means that clothing can be produced sustainably, quickly and cost-effectively at the place of sale – even in high wage countries.”
May 13, 2024 – AimHi Earth Raises £1M in New Round
AimHi Earth has raised £1 million in a new round from tech and finance entrepreneurs Nicco Perra, Sam Wisnia, and The Climate Planet Foundation. The London, UK-based company, which was founded in 2020 by Matthew Shribman, Bella Soares, and Sarah Humphrys, provides climate and sustainability training to equip workers and companies “across all sectors … with the essential understanding, skills and ideas to overcome the climate and nature crisis and ensure sustainability.”
Apr. 30, 2024 – Carbonfact Raises €13.9M in Series A
Carbonfact has raised $15M in a Series A funding round led by Alven with participation from Headline (Fetch, Segment, Mistral AI) and Y Combinator. The Paris, France-based startup provides a software platform for the fashion industry to automate environmental reporting. CEO Marc Laurent said in a statement, “After meeting with hundreds of textile brands and suppliers, we realised that collecting data and reporting on all product and supply-chain information is a complex task that requires more comprehensive data management than spreadsheets allow. We believe that fashion brands should be able to measure and report on climate progress with limited manual work.”
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