Leading gen next materials company AltMat has announced the close of its latest funding round, with participation from Rainmatter by Zerodha, H&M Group, Turbostart, and Fashion for Good. The round marks a landmark moment – H&M Group’s first investment in next-gen innovation in India, and Rainmatter by Zerodha’s first investment in textile materials.
AltMat: IMPACT x PROFITABILITY
AltMat was founded on the belief of Founder, Shikha Shah, that impact and profitability should coexist to truly do good in and for the new-age world.
While at one end we use millions of tons of pollutive fibres for fashion, at the other end we waste or burn millions of tons of agri-residue. AltMat solves this dual problem at once with a breakthrough innovation – Altag®, a natural cellulose fibre made 100% from agricultural residue such as leftover stems of food crops. It matches the performance of conventional fibres while dramatically reducing environmental impact.
In just five years, the company has scaled its technology from lab to pilot to industrial capacity while building value chains and attracting global traction, validating both its breakthrough innovation and its ability to deliver at scale. This combination of scientific innovation, execution, and market validation has made AltMat a great choice for leading global and Indian investors looking to accelerate sustainability in textiles and beyond.
“Our journey has been no short of all that it takes to make a shifting wave in ever-existing industries like agriculture and textiles. We are thankful for every bit of it and are excited to welcome extraordinary investors who believe in our purpose and its power. With Rainmatter, Turbostart, H&M Group, and FFG bringing in unparalleled understanding of scaling innovation and access to industry, we are now onto our next phase of progress – Forward and Upwards,” says Shikha Shah.
THE NEXT PHASE OF GROWTH
The four investors represent the perfect blend for AltMat’s next phase of growth. Rainmatter, the investment fund of Zerodha founded by Nithin Kamath and Nikhil Kamath, and Turbostart, a seasoned investor in sector-agnostic growth startups, add entrepreneurial depth and financial muscle.
“At Rainmatter, we back entrepreneurs who are rethinking systems for long-term sustainability. 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. We are excited to support Shikha and her team.” says Abhinav Negi, Rainmatter.
“The textile industry’s environmental footprint is immense, with billions of tonnes of hazardous fibres consumed annually. AltMat’s IP tackles this challenge by converting agricultural waste into scalable, sustainable fibres. 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 founder Shikha Shah’s domain expertise to build a global leader from India,” adds Venkat Raju, CEO & Founding Partner, Turbostart Global.
Additionally, H&M Group, one of the world’s largest fashion brands, and Fashion for Good, a global innovation platform with corporate partners such as C&A and PVH, 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. 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,” says Laura Coppen, Investment Manager at New Growth & Ventures, H&M Group.
“AltMat’s Altag® technology is a great example of how innovation can address multiple challenges at once, turning agricultural residue into high-performance fibres while reducing 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. With this funding round, we aim to provide that critical support for their next stage of growth and the wider adoption of next-gen fibres in the industry,” adds Katrin Ley, Managing Director, Fashion for Good.
With this new round of investment, AltMat will expand grassroots supply chains for Indian farmers, strengthen R&D, and extend its global market reach. This milestone marks a significant moment in AltMat’s journey, reinforcing the growing global demand for innovative alternatives to conventional materials and AltMat’s leadership in making such natural materials from agri-residue.
