TrusTrace Raises $24M to Innovate Fashion Supply Chain Transparency

TrusTrace, a leading provider of supply chain traceability and compliance solutions, has announced the completion of a $24 million growth investment led by Circularity Capital, an investor in businesses that enable the circular economy.

Existing investors Industrifonden and Fairpoint Capital also participated in the round.

What is TrusTrace?

Founded in 2016, TrusTrace offers a market-leading platform that helps brands and suppliers around the world standardize how supply chain and material traceability data is captured, digitized, and shared.

By providing access to validated supply chain data, TrusTrace empowers brands to identify, understand, and improve the impact of their supply chains.

The data can be used for risk management, compliance, product claims, and ecological 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 United States.

Read our interview with Shameek Ghosh, CEO of TrusTrace.

Growth Plans

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 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.

Backed by new funding, TrusTrace will further cement its position as the fashion industry’s trusted partner for identifying and managing supply chain risk, ensuring compliance and driving sustainability across value chains.”

Traceability Gaining Momentum

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, Primark, 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.

Circular Economy Expertise

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.

The Future of Traceability

TrusTrace’s $24 million growth investment is a clear signal of the growing importance of supply chain traceability in the fashion industry.

With Circularity Capital’s expertise in the circular economy, TrusTrace is well-positioned to help brands make the transition to a more sustainable future.