Material Exchange is a Swedish fashion tech startup that claims to deliver the world’s most comprehensive digital material management solution. According to the company, it works directly with the leading retail apparel and footwear brands across the world to analyse, optimise and digitise the material sourcing and development processes. Now, the startup has announced that it has closed €5M funding.
Growth plans on full swing
Material Exchange intends to use the €5M investment led by Norrsken VC, one of the largest European impact tech funds and Partech to accelerate its growth plans. The other investors that participated in the funding round include Day One and Lyra Ventures. Also, its previous investor, Inventure, which led the investment round last year also participated in the fresh funding round.
According to the company, it helps brands and manufacturers find the right materials & connect with the right suppliers. It also claims to work with leading retail apparel and footwear brands to analyse, optimise and digitise their material sourcing and development processes.
The company refers to its database as a highly secure vault containing approximately 40,000 digital materials from some of the largest material suppliers in the world including, Clarino, Tiong Liong Corp, Kuraray and over 350 more.
According to Material Exchange, the company has greatly benefited by the “new normal” caused by the pandemic. “Our business exploded overnight as the fashion industry realised that with global travel halted, textile fairs canceled and employees forced to work remotely; – fashion brands, suppliers and manufacturers had a pressing need for a solution to source materials and manage relationships with suppliers in a completely digital environment,” says Darren Glenister, CEO of Material Exchange.
“The Covid-19 pandemic has accelerated the digitalisation of the industry by at least five years, we can’t afford to lose momentum, so have accelerated our fundraising plans in order to seize the opportunity and scale rapidly,” he further adds.
Serves big brands!
Founded in 2016 by Darren Glenister in Stockholm, Material Exchange is claimed to be working towards becoming the next young Swedish unicorn and is adding key hires to its global team. Last year, Material Exchange launched its platform, and it already works with almost 400 suppliers and 50 brands globally including Ariat, Keen, Caleres, Steve Madden, Deckers Brands, Global Brands Group and many more.
Main image picture credits: Material Exchange