H&M Invests in Indian Startup Turning Farm Waste into Fashion Fiber
The H&M Group has made a strategic investment in AltMat (Alternative Materials), an innovative Indian company dedicated to transforming agricultural waste into valuable textile products. AltMat achieves this through a proprietary technology that combines mechanical, chemical, and enzymatic processes. This significant commitment underscores the Swedish group's — owner of renowned brands like H&M, COS, Weekday, and Arket — ambition to strengthen its sustainability initiatives and foster a more circular economy within the fashion industry.
Founded in 2017 by Gujarati entrepreneur Shikha Shah, AltMat's core mission revolves around converting various forms of agricultural waste, such as hemp stalks, into versatile textile resources. These resources include high-quality yarns, fibres, and fabrics. The company's advanced technology yields "Altag," a natural, industrial-grade fibre suitable for a diverse range of applications, from home décor and clothing to accessories and even paper production, highlighting its potential across multiple sectors.
AltMat recently announced a successful funding round, attracting capital from several key investors. Alongside the H&M Group's inaugural investment in this sector in India, the round saw participation from Rainmatter by Zerodha, Turbostart, and Fashion for Good. The capital raised is earmarked for two crucial areas: bolstering AltMat's relationships with farmers, which are vital for securing raw materials, and accelerating its research and development efforts to further enhance its innovative material solutions.
The significance of this funding round was highlighted by AltMat on LinkedIn, noting it marked several "firsts": H&M Group's initial investment in next-generation innovation in India, and Rainmatter by Zerodha's first foray into textile materials. The company emphasized that the quartet of investors represents "the ideal combination of patient capital for sustainable deep-tech innovation, sector expertise, entrepreneurial strength and an understanding of the challenges of sustainable growth." Laura Coppen, Investment Director at H&M Group New Growth & Ventures, expressed pride in the investment, describing AltMat as a "very promising material that uses agricultural residues to make a fibre similar to linen and cotton, for fashion and the home." This move by the H&M Group further reinforces its commitment to sustainable practices, following its renewed partnership with Swedish textile fibre recycling company Circulose last June.
