Retraced raises €15m for fashion traceability platform

German startup Retraced has raised €15m ($16.6m) in first-round financing that will be used to further develop its digital traceability system for sustainability management and transparency in the fashion and textile industries.

The Dusseldorf-based company – which has signed up a growing list of clothing manufacturers including fashion brands Marc O'Polo and S. Oliver Group, mountain sports outfitter Vaude, and fabrics company L'atelier Marey – said the cash injection will help drive the rollout of its platform internationally.

Set up in 2019, Retraced provides a blockchain- and cloud-based chain-of-custody traceability tool that allows customers in the apparel and textiles industries to digitally track products from production to retail, helping them to gain greater insight into their supply chains.

It came into being at a pivotal moment for the apparel sector, as a backlash against disposable 'fast fashion' started to build momentum and brands started to sign up to commitments for environmental, social, and governance (ESG) standards, and use them as a competitive edge in marketing.

Earlier this year, the European Parliament voted to adopt proposals aimed at reducing waste from the textiles sector, including requiring fashion brands and textile producers to pay for the collection and recycling of clothing and footwear.

An EU report found that the bloc generates almost 13m tonnes of textile waste every year, including around 5m tonnes of clothing and footwear. Meanwhile, less than a quarter (22 per cent) of consumer textile waste is collected separately for reuse or recycling, with the remainder often incinerated or sent to landfill.

The Series A round was led by Partech, one of the largest tech investment platforms in Europe, with participation from previous investors Alante Capital, Alstin Capital, Samaipata, and F-Log Ventures.

Commenting on the round, Retraced chief executive and founder Lukas Pünder said it "marks a pivotal moment for Retraced," adding: "As the regulatory landscape becomes more complex, our mission to simplify sustainability management and make it more effective is more important than ever.

"With the support of our investors, we are well-positioned to continue developing our platform, empowering fashion brands to meet their sustainability goals and build stronger relationships with their suppliers and their customers."