Galy Co. raises funds to scale lab-grown cotton

Boston-based agricultural startup Galy Co. has raised $33 million in an oversubscribed Series B funding round, led by Breakthrough Energy Ventures (BEV) with support from new investors H&M Group and Inditex, parent company of Zara. The funding will support research and development and help scale Galy’s flagship product, lab-grown cotton, which promises a significantly smaller environmental footprint compared to traditional cotton farming.

Galy Cotton is produced using 99 percent less water, 97 percent less land, and emits 77 percent less CO2 than conventional cotton. The company’s CEO and founder, Luciano Bueno, emphasized the importance of developing alternative agricultural solutions to address the growing threat of climate change. “Soon, the world will face increased volatility in conventional agriculture as extreme weather conditions become more frequent. Galy will be ready, better equipping our economy to withstand these shocks,” he said.

Galy’s innovation lies in cultivating cotton plant cells in bioreactors, which replicate the ideal environment for growth, producing cotton that matches traditional cotton in quality. The lab-grown material is processed into yarns, fabrics, and finished products, offering the textile industry a more sustainable option. With this success, Galy aims to expand its cellular agriculture platform to include other plant-cell products.

Inditex’s CEO, Óscar García Maceiras, highlighted the company’s investment in Galy as part of its strategy to reduce the environmental impact of cotton production. He noted, “Galy’s technology marks a significant step in advancing an innovative and more responsible textile industry.”

H&M Group, another key investor, sees Galy’s lab-grown cotton as pivotal to reducing its reliance on virgin cotton, which currently makes up 60 percent of its sourced materials. Martin Ekenbark, Circular Innovation Lab lead at H&M, expressed excitement about Galy’s potential breakthrough and reiterated the company’s commitment to using sustainable materials by 2030.