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Exclusive: TrusTrace snags $24M Series B from Circularity Capital

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Jan 17, 2024
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TrusTrace, a supply chain traceability platform for the fashion industry, has raised a $24 million Series B from Circularity Capital, TrusTrace CEO Shameek Ghosh tells Axios exclusively.

Why it matters: As regulatory scrutiny around fashion's supply chains mounts, retailers are seeking improved traceability.

Details: Existing investors Industrifonden and Fairpoint Capital, who co-led the company's $6 million Series A round, participated in the new round.

  • The Stockholm, Sweden-based company's seed round was led by Backing Minds in 2019.

Of note: The company said its subscription revenue grew five-fold since its previous growth round in 2021.

How it works: TrusTrace provides real-time data on social and environmental issues — on everything from raw materials to finished goods — of a company's supply chain.

  • It helps retailers map out where their Tier 1, Tier 2 and Tier 3 factories and beyond are, especially because most of their supply chains are outsourced.
  • It can also integrate with retailers' manufacturing and supplier systems, as well as partner with third parties like certification agencies to obtain their data.
  • TrusTrace will try to flag suppliers that may have given forged or falsified data and alert the brands or partners, Ghosh says.
  • Suppliers are not charged to use the platform.

What they're saying: TrusTrace's focus on one vertical — fashion and textiles — allows it to build domain expertise, Circularity investment director Anders Brejner says.

  • Due to the sheer size of its large enterprise customers, TrusTrace is demonstrating "traceability at scale," Brejner says.
  • Large fashion companies are "unable to make improvements or track progress through these complex supply chains without that transparency and traceability, so [TrusTrace] is solving very significant issues for them," Circularity partner Jamie Butterworth adds.

What's next: TrusTrace is working with retail brands in several countries, including the U.S., Japan and Australia, and wants to build on-the-ground teams in those markets, Ghosh says.

  • TrusTrace's customers extend into the apparel, footwear and luxury brand spaces. Among them are Adidas, Brooks Running, Tapestry, and Asics.
  • The company's deal pipeline is growing, Ghosh says, noting it expects to onboard 15 to 16 companies annually.
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