Supply chain traceability platform TrusTrace, announced today that it has raised $24 million through a growth investment led by circular economy-focused investor Circularity Capital.

Founded in 2016, Stockholm, Sweden-based TrusTrace offers a software-as-a-service (SaaS) platform for supply chain traceability and compliance, enabling brands and suppliers to standardize how supply chain and material traceability data is captured, digitized, and shared. With a focus on the fashion industry, the platform helps apparel manufacturers comply with sustainability commitments by tracking and verifying the source and journey of textiles used in manufacture. The data can be used for risk management, compliance, product claims and footprint calculations.

TrusTrace customers include some of the largest global apparel, footwear and luxury brands, including adidas, Brooks Running, Tapestry, and Asics.

The fundraising comes as the fashion industry is under increased scrutiny by regulators, environmental groups and consumers for human rights violations, unsustainable manufacturing processes and waste. For example, in 2023, the European Commission unveiled new proposed rules aimed at supporting the sustainable management of textile waste, and placing responsibility for the full lifecycle of textile products in the hands of producers.

Shameek Ghosh, CEO and Co-Founder of TrusTrace said:

“A growing number of fashion and textile brands are adopting supply chain traceability to support their sustainability goals and ensure competitiveness in the face of mounting regulatory and consumer pressure. The completion of this growth investment is further evidence that businesses see traceability as critical to achieving their sustainability goals.”

According to TrusTrace, proceeds from the new investment will be used to accelerate the company’s global expansion by expanding its presence in key markets, deepening product innovation, and expanding collaborations.

In addition to Circularity Capital, the growth investment included participation from existing investors Industrifonden and Fairpoint Capital.

Anders Brejner, Investment Director at Circularity Capital, said:

“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.”