AltMat has just closed a landmark funding round, attracting investment from Rainmatter by Zerodha, H&M Group, Turbostart and Fashion for Good.
The round marks two major debuts: H&M Group’s inaugural investment in next-generation material innovation in India and Rainmatter’s first foray into textiles.
In a one-two move, the materials science company turns agricultural residue into natural textile fiber, addressing the dual problem of both agri-waste and textile materials pollution. Over the last seven years, the Ahmedabad-based mill has scaled from lab to pilot to industrial scale production, with global value chain partners and traction from brands.
Related Stories
“Our journey has been…all that it takes to make a shifting wave in ever-existing industries like agriculture and textiles,” said AltMat founder Shikha Shah. “We are thankful for every bit of it and are excited to welcome extraordinary investors who believe in our purpose and its power.”
Founded on Shah’s belief that impact and profitability should coexist, AltMat’s approach is two-pronged. On one end, the industry uses millions of tons of pollutive fibers for fashion; the other wastes millions of tons of agri-residue.
AltMat’s flagship offering, Altag, works to solve the dual problem at once. The natural cellulose fiber is made from 100 percent agricultural residue, such as leftover stems of food crops. It matches the performance of conventional fibers while reducing environmental impact.
“With Rainmatter, Turbostart, H&M Group and [Fashion for Good] bringing in unparalleled understanding of scaling innovation and access to industry, we are now onto our next phase of progress,” Shah said. “Forward and upward!”
And these four investors create the ideal blend for AltMat’s next phase of growth, the company said. Rainmatter is the investment fund of Zerodha—India’s largest online stock brokerage firm—founded by billionaire brothers Nithin and Nikhil Kamath. Venture capital firm and sector-agnostic startup accelerator, Turbostart, meanwhile, adds “entrepreneurial depth and financial muscle.”
“The textile industry’s environmental footprint is immense, with billions of [metric tons] of hazardous fibers consumed annually. AltMat’s IP tackles this challenge by converting agricultural waste into scalable, sustainable fibers,” said Venkat Raju, CEO and founding partner of Turbostart Global. “We see AltMat as a pioneer shaping the next wave of sustainable fashion infrastructure. Our investment reflects our conviction in both this opportunity and in Shikha Shah’s domain expertise to build a global leader from India.”
On the other hand, the H&M Group and Fashion for Good bring “unmatched industry access and credibility.”
“Investing in AltMat is not just about backing material innovation but about enabling a shift in the way our industry sources at scale,” said Laura Coppen, H&M Group’s investment manager of new growth and ventures. “We see enormous potential in AltMat’s solution to benefit not just us as a company, but the entire fashion industry in its transition toward a more sustainable future.”
For Fashion for Good, the Altag technology showcases how innovation can address multiple challenges at once, as turning agricultural residue into high-performance fibers can also reduce the environmental impact of fashion.
“Over the past years, we have worked closely with AltMat to support the validation of their solutions, helping to integrate them into real-world applications,” said Katrin Ley, managing director of the Amsterdam-based innovation platform. “With this funding round, we aim to provide that critical support for their next stage of growth and the wider adoption of next-gen fibers in the industry.”
With this investment round, AltMat shared plans to expand grassroots supply chains for Indian farmers, strengthen research and development as well as extend its global market reach.
“At Rainmatter, we back entrepreneurs who are rethinking systems for long-term sustainability,” said associate Abhinav Negi. “AltMat is a case of how Indian entrepreneurs are solving problems that matter globally. By building value for farmers and industries, they’re showing what sustainability at scale truly looks like.”
For Turbostart Global, the Bangalore-based accelerator sees AltMat as a “pioneer, shaping the next wave of sustainable fashion infrastructure.”
“The textile industry’s environmental footprint is immense, with billions of [metric tons] of hazardous fibers consumed annually. AltMat’s IP tackles this challenge by converting agricultural waste into scalable, sustainable fibers,” said Venkat Raju, CEO and founding partner of Turbostart Global. “Our investment reflects our conviction in both this opportunity and in founder Shikha Shah’s domain expertise to build a global leader from India.”
