Los Angeles-based materials science company Ambercycle, announced the closure of a $21.6 million Series A financing round led by H&M CO:LAB, KIRKBI, Temasek, BESTSELLER's Invest FWD, and Zalando. Ambercycle has now raised a total of $27 million in order to develop infrastructure and materials for circularity in the fashion sector, thanks to this new funding.
According to government and environmental groups, about 120 billion clothing are wasted each year. Shay Sethi and Moby Ahmed created Ambercycle in 2015 with the purpose of bringing circularity to the fashion industry. Ambercycling™, the company's ground-breaking method, separates and purifies post-consumer textile waste at the molecular level, resulting in regenerated materials that brands and designers can use to create new clothing. This decreases both the amount of waste that ends up in landfills and the need to remove finite resources from the planet.
cycora®, the company's first solution, is a ground-breaking material that recycles old garments by converting end-of-life textile waste into new materials. cycora is a direct alternative for the tens of billions of pounds of polyester used each year, and it mimics the practical qualities of traditional fabrics while allowing fashion makers and designers to create high-quality outfits that are circular in nature.
Shay Sethi, co-founder and CEO of Ambercycle, said that the change to circularity in fashion is unavoidable. They're creating an ecosystem where materials can coexist with humans and the environment in peace. Their ground-breaking molecular regeneration technique provides a clear sense of circularity, allowing fashion to flow in and out of our lives. This will not only increase the sustainability of the goods in our wardrobes, but it will also provide them with a new way to engage with the materials.
Damir Hamzić, head of Circular Plastic investments at KIRKBI, said that in KIRKBI, Circular Plastics is a new theme investment area where KIRKBI intends to promote the trend towards a world where plastics never become garbage. Textiles account for a large portion of the plastic trash produced globally. They consider Ambercycle as a promising company in the textile-to-textile recycling space, managed by a devoted management team, and they wish to support the firm's ambitious objectives with this investment.
The company has demonstrated the technology by constructing a demonstration plant in downtown Los Angeles during the last three years. With the cash raised, the company intends to increase cycora production. The ground-breaking material has already been used in successful partnerships with Los Angeles streetwear companies like Justin Mensinger, select luxury brands, and, most recently, H&M for its 2021 Circular Design Story Collection.
Erik Karlsson, Acting Head of H&M CO:LAB, said that they're thrilled to be able to assist Ambercycle with this latest collection, and they're looking forward to continuing to be a part of their great journey. The H&M Group has set a lofty aim of being totally circular by 2030, and they have complete faith in Ambercycle's staff and their unwavering commitment to their cause. They look forward to partnering with them as they scale commercially as a result of this new funding round.
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