Lululemon backs nylon recycling startup Syntetica in $30M Series A
Activewear company Lululemon has invested in the $30 million Series A round raised by Syntetica, a French startup that developed a novel approach to recycling
Activewear company Lululemon has invested in the $30 million Series A round raised by Syntetica, a French startup that developed a novel approach to recycling nylon, whose properties make it both too good to give up but hard to reuse. Syntetica promises to recycle two types of nylon — Nylon 6 and Nylon 6,6 — that can’t easily be sorted out from each other in the textile waste collected from consumers, its CEO Marco Bertone told TechCrunch. With tons of clothing ending up in landfills each year, one key reason for the fashion industry to invest in more circularity is customer perception, especially for premium apparel brands. Startups like Syntetica also benefit from regulatory tailwinds, and from recent price volatility that unusually affected nylon. In the last six months, geopolitical turmoil in the oil industry has led to quarterly or weekly nylon price renegotiations, Bertone said. “It’s been a wake-up call to many brands that have been relying on petrol-sourced nylon and petrol-sourced synthetics for pricing and convenience, and which today have seen massive shocks to their system.” According to Bertone, this is a good fit for Syntetica’s pragmatic approach. “We have built the company with the clarity that there’s no green premium.
That if you want to scale real solutions for a sustainable world, it needs to be cost competitive, highly scalable, and you need to build partnerships from the very start.” The startup’s partners include brands like Lululemon, but also Victoria’s Secret and Etam, with a recycling project that could go to market early next year. Syntetica’s Series A was also backed by a large apparel manufacturer, MAS Holdings — “a recognition of how significant the problem has become,” Bertone said. It is indeed quite unusual for a supply chain actor to invest in a player that hasn’t scaled yet. But before its Series A, Syntetica had already closed a partnership with Michelin’s Centre for Sustainable Materials to establish a commercial demonstration facility in the industrial company’s French hometown, Clermont-Ferrand. Unlike other startups in its field, Syntetica won’t produce textile itself, let alone a novel material. The product of its recycling process will be pellets, which can then be used by others to make yarn for the likes of MAS. “It’s a story of pragmatic industrial partnerships with the right players to get buy-in from the whole value chain,” Bertone said. With a background in fashion and second-hand e-commerce, Bertone is the business guy at Syntetica.
The BriefWire