H&M Group has joined forces with global innovation platform Fashion for Good to invest in Indian materials tech pioneer AltMat, marking a milestone in the pursuit of circular, sustainable textiles for the world’s largest apparel players. The strategic funding round, announced in October 2025, highlights the growing demand for next-generation fibers that can deliver high performance with significantly reduced environmental impact.
From Agri-Waste to Textile Innovation
AltMat’s breakthrough fiber—Altag—is a natural cellulose material made 100% from agricultural residue such as leftover stems of food crops and is said to match the performance of conventional fibers while dramatically reducing environmental impact. Founder Shikha Shah’s vision is to transform agricultural waste, such as hemp stalks, into textile resources, including yarns, fibres, and fabrics. The technology combines mechanical, chemical and enzymatic processes, using supply chains that begin with grassroots Indian farmers.
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.
Scale, Market Validation, and Empowering Farmers
In five years, AltMat has scaled from lab to demo pilot to industrial capacity. Its cellulose-based yarns and woven fabrics can be used for home décor, clothing and accessories, or even to produce paper, and have already built a diverse value chain to prove industrial scalability.
With this latest round of investment, AltMat aims to strengthen its grassroots supply chains by empowering Indian farmers, enhance its research and development capabilities, and expand its presence in global markets. The milestone underscores the increasing worldwide demand for sustainable alternatives to traditional materials and highlights AltMat’s pioneering role in transforming agricultural residue into high-performance natural textiles.
Global Investors, Local Impact
Other investors joining H&M and Fashion for Good include fintech/health fund Rainmatter by Zerodha and VC fund Turbostart. AltMat lauds this group as the ideal combination of patient capital for sustainable deep-tech innovation, sector expertise, entrepreneurial strength and an understanding of the challenges of sustainable growth.
Aligning With H&M’s Sustainability Roadmap
This investment is H&M Group’s first in an Indian startup in the sustainable materials space, a move that reinforces the Group’s commitment to transforming how the fashion industry sources at scale. H&M is targeting 100% recycled or sustainably sourced materials by 2030 and 30% recycled materials by 2025.
The AltMat Commitment
Founder Shikha Shah reflected on the company’s journey, emphasizing how AltMat’s evolution represents more than just business growth—it embodies a deep transformation within traditional sectors like agriculture and textiles. She noted that the company’s progress has involved years of experimentation, collaboration, and a firm belief that sustainability and scalability can coexist.
With strategic support from partners such as Rainmatter, Turbostart, H&M Group, and Fashion for Good, Shah highlighted how their combined expertise in innovation, funding, and industry access has created the ideal foundation for AltMat’s next chapter. This new phase, she explained, is not only about expanding production and technological capabilities but also about redefining how sustainable materials are sourced, developed, and adopted globally.
She concluded by expressing optimism for the future, describing this milestone as a launchpad for accelerating change—one that propels AltMat forward and upward in its mission to lead the global shift toward sustainable textile innovation.
Accelerating True Circularity
The AltMat investment is not an isolated move for H&M. It follows others in textile recycling (like Swedish firm Circulose) and innovative materials (eg. Eastman’s Naia™ Renew), all propelling the company—and its peers—toward deeper supply chain transformation.
Looking Ahead: A Platform for Change
This partnership is widely quoted as establishing AltMat as an attractive option for top global and Indian investors aiming to enhance sustainability in the textile sector and beyond. As the fashion industry embraces agri-waste cellulose and next-gen fibers, AltMat, H&M Group, and Fashion for Good position themselves at the heart of the solution for sustainable fashion on a global scale.
