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 …
March 26, 2025 – Lululemon Makes “Minority Investment” in ZymoChem
Lululemon has signed a multi-year agreement with biotech company ZymoChem to scale its use of bio-based nylon, expanding on a partnership that began with a $21 million Series A investment last year. The athleticwear brand is making a minority investment to help commercialize ZymoChem’s technology for producing adipic acid, a traditionally petroleum-based ingredient critical to nylon 6,6. According to Lululemon, the resulting bio-nylon offers the same performance and feel as conventional materials and is already featured in popular styles like its Align and Wunder Train leggings, supporting the brand’s shift toward more sustainable raw materials.
March 10, 2025 – Circ Raises $25M in New Round
Textile-to-textile recycling pioneer Circ has raised $25 million in funding, led by investment firm Taranis through its Carbon Ventures fund. This latest round will support Circ’s transition from demonstration-scale to industrial-scale production, accelerating its mission to revolutionize textile circularity. Existing investors Avery Dennison and Inditex, which previously collaborated with Circ on a 2023 Zara collection featuring recycled polycotton textiles, also participated in the round. With the new capital, Circ is now plotting its first industrial-scale textile recycling plant, furthering its ability to separate and recover blended polyester-cotton fibers, a major challenge in textile waste management.
Circ CEO Peter Majeranowski emphasized that this phase demands world-class engineering, operations, and investment from aligned partners, noting that Taranis’ industrial expertise will be instrumental in scaling the company’s impact.
March 7, 2025 – Epoch Biodesign Raises $18.3M in Series A Round
Epoch Biodesign has raised $18.3 million in a funding round led by Extantia Capital, with participation from Lowercarbon Capital, Inditex, and others. The London-based biotech startup will use the funds to scale its AI-driven plastic biorecycling technology, expand its enzyme library, and build its first commercial-scale recycling plant in the UK, set to launch in 2025.
Epoch’s proprietary enzymatic process accelerates plastic degradation, with a focus on Nylon 6 recycling for the textile industry. The company plans to double its team size over the next year and aims to make recycled plastic cheaper than virgin materials, paving the way for large-scale adoption by major fashion brands.
Jacob Nathan, founder and CEO of Epoch Biodesign, emphasized the company’s vision, stating, “We are building our first biorecycling plant to serve some of the most important clients in the textile industry. This funding allows us to expand our enzyme library to tackle materials that were previously non-recyclable.”
Feb. 26, 2025 – ctrl+s Raises €1M in Seed Funding
ctrl+s has raised €1 million in a seed funding round led by HTGF, with additional participation from angel investor Benjamin Schulz. The Berlin-based climatetech startup, which provides high-resolution insights into supply chains to support sustainability strategies and decarbonization efforts, will use the funds to scale its platform, enhance its technology, and expand its market reach.
Johannes Scholz, Co-Founder and Managing Director of ctrl+s, commented, “Many companies set ambitious climate goals, but the real challenge lies in avoiding resource-intensive data collection efforts that don’t significantly bring them closer to achieving their targets. Our platform provides strategic procurement teams with a robust data foundation for precise decision-making – and the essential tool to take action and effectively reduce emissions.”
Feb. 24, 2025 – Karomia Raises €2M to Expand ESG Reporting Platform
Karomia has raised €2 million in a funding round led by Entourage, imec.start Future Fund, and imec.start Fund. The Belgian software company will use the funds to enhance its AI-powered ESG reporting platform, streamline Corporate Sustainability Reporting Directive (“CSRD”) compliance, and expand its solutions to help businesses develop sustainability strategies. The B2B SaaS platform automates CSRD report generation, facilitates Double Materiality Assessments, and ensures auditor-ready compliance, enabling companies to focus on impactful sustainability initiatives.
Jens Verhiest, COO of Karomia, highlighted the efficiency of the platform, stating, “ESG reporting doesn’t have to be complex in the age of AI. Our customers focus on what matters: prioritizing and executing their sustainability initiatives, while Karomia’s knowledge machine eliminates the bureaucracy of report writing.”
Feb. 20, 2025 – H&M Foundation Invests $15.4M in Fashion ReModel
H&M Foundation has committed $15.4 million to the Fashion ReModel project, which aims to showcase commercial alternatives to traditional garment production through rental, repair, resale, and remake models. The non-profit arm of the Swedish fashion giant will support the project over the next three years to scale circular business models and help decouple revenue from production.
The initiative, first unveiled at the 2024 Global Fashion Summit in Copenhagen, brings together leading brands to find solutions, overcome challenges, and promote circular economy practices. Participating companies will commit to growing their revenue share from circular models and will report progress annually to the Ellen MacArthur Foundation.
This is a short excerpt from a data set that is published exclusively for TFL Pro+ subscribers. For access to our up-to-date investments and M&A tracker, inquire today about how to sign up for a Professional subscription.
Share
