Material Exchange — the Swedish software company helping H&M and Ugg source more sustainable materials has raised over €25 million in funding to grow its operations as a sustainable material provider for fashion brands.
The funding will help Material Exchange scale its overall operations worldwide, adding to its current offices in Stockholm, Armenia, India, New York, and China and expanding its C-suite across Stockholm and London.
Material suppliers subscribe to the platform, which has allowed them to showcase their materials to potential brand partners. Brands subscribe to connect with suppliers while using Material Exchange's material management system in order to keep track of materials and workflows in real-time. Recently, the company launched an app to host its platform.
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% of the fashion industry's emissions come from upstream activities, including material production, preparation, and processing. However, sustainable alternatives to synthetics are often difficult to source.
"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. I wanted an investor who saw the big picture and could help us make the industry more transparent and sustainable," says CEO Darren Glenister.
Material Exchange will be using a large part of its funding to expand its sustainability credentials and then acquire other companies to help accelerate its growth.