Canvaloop raises funds to scale agricultural waste-based textile fibers

Canvaloop has raised $1.5 million in funding from GVFL and Rockstud Capital. The investment will support the company’s efforts to scale its technology that converts agricultural waste into textile-grade fibers, strengthening its role in sustainable material innovation.

The funding highlights growing confidence in India’s deep-tech sustainability sector. Both investors are known for supporting scalable and environmentally focused businesses, and this investment reflects increasing institutional interest in solutions that address global environmental challenges while building strong supply chains.

Canvaloop has developed a proprietary process that transforms farm waste such as hemp, flax, and banana fibres into high-performance, biodegradable textile materials. These fibres are designed to compete with traditional materials like cotton. The company’s approach reduces water and chemical use through a closed-loop system, offering a more environmentally friendly alternative. Its “plug-and-play” model allows existing textile mills to adopt the technology easily, supporting wider industry adoption.

Canvaloop plans to increase its production capacity from 30 tonnes to 300 tonnes per month. It also aims to invest further in regenerative fibre innovation to meet growing demand and strengthen its position in the textile market.

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