Singapore-based impact investment firm Circulate Capital has backed Circ, a US-headquartered circular fashion startup, in a $25 million funding round, according to an announcement.
Circulate came in as a returning investor in the round, having participated in Circ’s oversubscribed Series B raise of about $30 million in July 2022. That round also saw the participation of Singapore state investor Temasek.
The latest funding round was also backed by new investors Zalando, a European online platform for fashion and lifestyle; global materials science and digital identification solutions firm Avery Dennison; and Korean manufacturing firm Youngone, among others.
Circ, founded in 2011, operates a patented technology that recycles global fashion waste back into textiles, over and over again. The startup is headquartered in Danville, Virginia, a former centre of textile production in the US.
The company said its technology is capable of separating and recovering mixed polymer streams, specifically any blend of polyester and cotton, which account for most fabrics manufactured. It then produces the basis of petroleum- and plant-based fabrics from discarded clothing.
Circ raised nearly $9 million in its Series A funding round anchored by Tin Shed Ventures in 2020.
“We share a common view that a clean future for the fashion industry is not only possible but also essential for humanity. With each funding round and expansion in our partner base, we become more capable of ending the costly and preventable cycle of garment waste,” said Circ CEO Peter Majeranowski.
Per the statement, Circ will use the fresh funding to accelerate engineering for industrial-scale facilities and deliver its first consumer products to market.
Circulate Capital, on the other hand, is an emerging market investment management firm that finances innovations, companies, and infrastructure that scale solutions to plastic waste and climate change crises.
It invests in companies engaged in innovative materials, alternative delivery models, advanced recycling technologies, and deep technologies that apply big data and artificial intelligence to expand circular supply chains.