Material Exchange is launching a new startup aiming to reimagine the way the fashion industry interacts with materials
Spotted: The Swedish fashion-tech company, Material Exchange has announced the closing of a €5m funding round to accelerate its growth plans. Together with billion-dollar computer software corporation Plugin76, the duo aims to streamline supply chain processes, helping reduce the need for physical samples, material wastage, and therefore supporting a more sustainable future.
Founded in Stockholm, the startup works directly with the world’s leading retail apparel and footwear brands to analyse, optimise and digitise their material sourcing and development processes.
The financing round was led by Norrsken VC (Europe’s largest impact tech fund) and Partech. Inventure, which led the company’s first financing round in November 2019, also participated. Day One and Lyra Ventures also joined the round as new investors.
With fashion brands forced to find new ways to source materials and manage relationships with suppliers in a digital environment, the pandemic presented a unique opportunity for the company.
“The COVID-19 pandemic has accelerated the digitalization of the industry by at least 5 years, we can’t afford to lose momentum, so have accelerated our fundraising plans in order to seize the opportunity and scale rapidly,” says Darren Glenister, CEO of Material Exchange.
Material Exchange launched its platform just over a year ago and today already works with almost 400 suppliers and 50 brands globally, including names like Caleres (Dr Scholl, Vince), Bestseller Group (Selected Homme, Jack Jones), Deckers Brands (Uggs, Teva) and Global Brands Group (Calvin Klein Shoes).
Written By: Katrina Lane