STOCKHOLM, January 18, 2024 — TrusTrace, a global SaaS company with a market-leading platform for product traceability and compliance, has announced the completion of a (U.S.) $24 million growth investment led by Circularity Capital, a specialist investor in businesses that enable the circular economy, with participation from existing investors Industrifonden and Fairpoint Capital.
According to Shameek Ghosh, CEO and Co-Founder of TrusTrace, the new investment will enable the company to further accelerate its global expansion ambitions by strengthening its presence in key markets, deepening product innovation and expanding collaborations – helping to create a global network where all value chains are traceable, circular, and fair.
Ghosh commented: “A growing number of fashion and textile brands are adopting traceability to support their sustainability goals and ensure competitiveness in the face of mounting regulations and consumer pressure,” Ghosh said today. “The completion of this new growth investment is proof that traceability lies at the core of sustainable transformation. Backed by the new funding, TrusTrace will continue to be the fashion industry’s trusted partner for discovering and managing supply chain risk, ensuring compliance and driving true sustainability across all value chains.”
Traceability has accelerated in importance and momentum as a key enabler of sustainable transformation, as evidenced by TrusTrace’s five-fold growth in subscription revenue in the 27 months since the previous growth round by Fairpoint Capital and Industrifonden in 2021, preceded by seed funding from Backing Minds in 2019.
The company is widely considered the preferred supply chain partner for global fashion brands seeking to drive sustainable change, manage ESG risks and ensure compliance across their highly complex supply chains. Notable TrusTrace customers include adidas, Brooks Running, Tapestry, Asics and many more of the world’s largest apparel, footwear and luxury brands. TrusTrace also plans to offer its services to regional and mid-size brands in 2024.
Ghosh added: “We are delighted to be partnering with Circularity Capital for the next phase of our growth, the combination of their specialist expertise in the circular economy and powerful international network makes them a strong value-added investor for us.”
Anders Brejner, Investment Director at Circularity Capital, commented: “We see a growing number of global fashion brands looking to transition away from today’s linear ‘take-make-dispose’ model of production and consumption to one that is more sustainable and equitable. We believe this is only possible at scale with the right digital backbone to provide transparency and traceability across complex global supply chains. TrusTrace is a clear leader in this field, with an excellent team, solution and blue-chip client base - and a great fit with our strategy to back global leaders enabling the circular economy. We are excited to be supporting TrusTrace as it continues to expand worldwide.”
With more than a billion products now tracked through the platform, TrusTrace has established itself as a business-critical solution for supply chain traceability. The platform empowers brands with verified data in real-time, as materials and finished goods move through the supply chain. It also integrates seamlessly with retailer, manufacturer and supplier systems, as well as other third-parties, such as certification agencies, lifecycle datasets and other sustainability solution providers.
For more information on TrusTrace, visit www.trustrace.com. To find out more about Circularity Capital, visit www.circularitycapital.com.
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About TrusTrace
Founded in 2016, TrusTrace offers a market-leading platform for supply chain traceability and compliance, enabling brands and suppliers around the world to standardise how supply chain and material traceability data is captured, digitised and shared. Through providing access to validated supply chain data, TrusTrace empowers brands to identify, understand and improve the impact of their supply chain. The data can be used for risk management, compliance, product claims and footprint calculations, offering the ability to share data confidently and easily about product origin, impact, and much more.
TrusTrace is leading global-scale traceability programs for many of the world’s largest brands. The company is headquartered in Stockholm, Sweden, with additional offices in India, France and the US.
About Circularity Capital
Circularity Capital is a European growth stage investor in the Circular Economy. The firm was founded in 2015 with the belief that circular companies deserve a specialist investor, and that this combination would drive premium investment returns alongside measurable positive impact. Circularity Capital works as a hands-on investor, harnessing specialist expertise and knowledge in the circular economy to support the businesses that it backs. One of its core investment themes is supporting businesses with ‘enabling solutions’ which, through technology, enable customers to be more resource effective or more circular.
