Retail conglomerates H&M Group and Inditex are among the latest round of investors in climate tech company Galy, known for its lab-grown cotton and alternative agriculture processes.
Galy is the organisation behind first-of-its-kind sustainable cellular agriculture products, which have the potential to shake up how the fashion industry sources and develops its materials, and this week it closed an oversubscribed $33 million Series B financing round.
H&M and Zara owner Inditex were among those investing in Galy as part of a group led by Breakthrough Energy Ventures (BEV).
Funds are expected to primarily fuel the expansion of Galy’s research and development on its innovative cellular agriculture platform and its flagship product, Galy Cotton, which the company said uses 99% less water and 97% less land than traditional cotton. It also reportedly emits 77% less CO2.
Luciano Bueno, CEO & founder of Galy, commented: “We are thrilled to have investors who recognise the crucial role that our climate adaptation technology will play in our daily lives.
“Climate change exposes the fragility of agricultural supply chains, and the recent rise in cocoa prices is a stark reminder of the new normal we face. Unfortunately, it’s not a matter of ‘if,’ but ‘when.’”
He added: “Soon, the world will face increased volatility in conventional agriculture as extreme weather conditions become more frequent. When that time comes, Galy will be ready, better equipping our economy to withstand these shocks.”
Galy is currently expanding its cellular agriculture platform beyond lab-grown cotton to include other plant-cell products.
In addition to BEV, H&M, and Inditex, the investment round was joined by repeat investors including Material Impact, John Doerr’s family office (Eighty Eighty Group), Artesian, BRINC and Reaction Global. There was also participation from Indorama Ventures, Endeavor Scale-up Ventures, and Unreasonable, among others.
Carmichael Roberts, founder & managing partner of Material Impact and part of Breakthrough Energy Ventures, said: “Agriculture is arguably the industry sector most impacted by climate change, while also being a major driver of greenhouse gas emissions itself.
“We need alternatives that can complement traditional agriculture without contributing to emissions or creating an overreliance on unstable supply chains. Galy’s cellular agriculture technology provides a solution to these challenges, while enhancing resource efficiency and building climate resiliency for the sector.”
Óscar García Maceiras, CEO of Inditex, remarked: “Taking this equity interest marks a significant step in our commitment to advancing towards an innovative and more responsible textile industry.
“By investing in cutting-edge technologies for producing next-generation fibres, we are not only moving towards our goal of exclusively using materials with a lower environmental impact, but also actively shaping the transformation of the industry through strategic capital investments.”
Martin Ekenbark, H&M Group’s circular innovation lab lead, noted: “GALY’s lab-grown cotton is on the verge of a breakthrough and could reduce reliance on virgin cotton if successful.
“We’ve been supporting the company’s progress since 2019 and are really excited to be part of this latest investment round. About 60% of the materials we source for our products is cotton and we have high ambitions that all our materials come from recycled or other sustainable sources by 2030, so partnering with Galy makes perfect sense.”
Read more about Inditex on Green Retail World
[image credit: Green Retail World]
