Alongside H&M Group, AltMat says it has also received investments from global sustainability initiative Fashion for Good, Indian fintech and health fund Rainmatter by Zerodha and venture capital financing firm Turbostart.

AltMat's natural cellulose fibre Altag is made 100% from agricultural residue such as leftover stems of food crops and is said to match the performance of conventional fibres while dramatically reducing environmental impact.  

Altmat explains that in five years it has scaled its technology from lab to pilot to industrial capacity while building value chains and attracting global traction to validate its innovation and ability to deliver at scale.

Altmat states: "This combination of scientific innovation, execution, and market validation has made AltMat a great choice for leading global and Indian investors looking to accelerate sustainability in textiles and beyond."

With this new round of investment, AltMat plans to expand grassroots supply chains for Indian farmers, strengthen R&D, and extend its global market reach.

It describes this milestone as a "significant moment in AltMat’s journey, reinforcing the growing global demand for innovative alternatives to conventional materials and AltMat’s leadership in making such natural materials from agri-residue". 

H&M Group's investment manager at New Growth & Ventures Laura Coppen says: "Investing in AltMat is not just about backing material innovation, but about enabling a shift in the way our industry sources at scale. We see enormous potential in AltMat’s solution to benefit not just us as a company, but the entire fashion industry in its transition toward a more sustainable future."

AltMat's founder Shikha Shah adds: “Our journey has been no short of all that it takes to make a shifting wave in ever-existing industries like agriculture and textiles. We are thankful for every bit of it and are excited to welcome extraordinary investors who believe in our purpose and its power. With Rainmatter, Turbostart, H&M Group, and FFG bringing in unparalleled understanding of scaling innovation and access to industry, we are now onto our next phase of progress - forward and upwards.”