Sustainable sourcing startup Material Exchange raises €25 million
The company helping H&M and Ugg with sustainable material sourcing is ready to scale, and its CEO says AI is the future.
by BELLA WEBB 12 APRIL 2022
Material Exchange — the Swedish software as a service (SaaS) company helping H&M and Ugg source more sustainable materials — has raised €25 million in Series A funding to grow its operations as a sustainable material provider for fashion brands.
The funding will allow Material Exchange to scale its operations globally, adding to its existing offices in Stockholm, India, Armenia, New York and Dongguan in China, and expanding its C-suite across Stockholm and London. The round was led by UK investor Molten Ventures, alongside previous investors Partech, Inventure, Norrsken, Lyra and Day One Capital.
Material Exchange — the Swedish software as a service (SaaS) company helping H&M and Ugg source more sustainable materials — has raised €25 million in Series A funding to grow its operations as a sustainable material provider for fashion brands.
The funding will allow Material Exchange to scale its operations globally, adding to its existing offices in Stockholm, India, Armenia, New York and Dongguan in China, and expanding its C-suite across Stockholm and London. The round was led by UK investor Molten Ventures, alongside previous investors Partech, Inventure, Norrsken, Lyra and Day One Capital.
Materials play a critical role in brands’ sustainability strategies, especially those with 2025 and 2030 goals to reduce carbon emissions: McKinsey & Company estimates that 70 per cent of the fashion industry’s emissions come from upstream activities including material production, preparation and processing. However, sustainable alternatives to synthetics can be difficult to source, as unreliable certifications are rife and transparency is limited.
“I see an incredible amount of waste in this industry, with many samples sent and materials created based on speculation rather than needs and data,” says CEO Darren Glenister. “I wanted an investor who saw the big picture and could help us make the industry more transparent and sustainable.”
Materials play a critical role in brands’ sustainability strategies, especially those with 2025 and 2030 goals to reduce carbon emissions: McKinsey & Company estimates that 70 per cent of the fashion industry’s emissions come from upstream activities including material production, preparation and processing. However, sustainable alternatives to synthetics can be difficult to source, as unreliable certifications are rife and transparency is limited.
“I see an incredible amount of waste in this industry, with many samples sent and materials created based on speculation rather than needs and data,” says CEO Darren Glenister. “I wanted an investor who saw the big picture and could help us make the industry more transparent and sustainable.”