Duesseldorf-based sustainability startup retraced receives €6.5 million in capital and gains ALSTIN Capital as new lead investor
Duesseldorf, 27.10.2022. After a successful seed round at the beginning of 2021 and the subsequent strong growth, retraced has now gained ALSTIN Capital as a new lead investor. In addition, the VC F-LOG Ventures, which focuses on logistics-related investments, and the existing investor Samaipata completed the round. The newly raised capital will be used primarily for the further development and automation of the platform as well as the expansion of the company.
The Duesseldorf-based startup retraced solves the most pressing challenges of the textile industry. Time and again, companies are criticized for their vague and unverified sustainability claims. Stakeholders in the value chain suffer as a result, and government regulations are being put in place to ensure that companies do their due diligence. The Uyghur Forced Labor Prevention Act (UFLPA) passed by the U.S. government obliges all companies that import cotton products into the U.S. to trace and prove that products do not contain materials from the Xinjiang Region of China - an area where forced labor has been reported. This is a major challenge considering the complex supply chains of the fashion industry. The retraced founders, whom themselves owned their own shoe brand before retraced, faced exactly these problems: Opaque supply chains and a resulting high-risk potential. This is how the company retraced was born.
The company retraced, which operates in America, Asia, and Europe, now offers the solution: a platform for sustainable supply chain management that brings brands, textile manufacturers, and suppliers closer together in order to exchange and evaluate compliance data from the supply chain and make it transparent and traceable. This allows them to be audited for potential hazards and enables companies to comply not only with national laws but also with their own or their customers' sustainability requirements. Retraced acts as a central interface between all suppliers and companies along the value chain to make them transparent by means of automated certificate checks, risk assessments, and audits. In addition, retraced's customers can integrate the complete supply chain of individual products into their online store and thus share the product's journey with consumers.
"Sustainable and social compliance regulations are on the rise. Many Western countries, including the US, France, and Germany, have adopted increasingly stringent compliance requirements for fashion and textile companies over the past year. To comply with these in the future, they need traceable supply chains," says retraced CPO and Co-Founder Philipp Mayer.
"We clearly see the high demand for a fast and effective response to the new legal obligations in our platform usage which has increased tenfold in the past 12 months. We are using the new capital to develop our platform further and enable more and more automated analyses and evaluations for our partners. By the end of 2023, we want to register around 30,000 suppliers on our platform," adds retraced CEO and co-founder Lukas Puender.
Progressive fashion companies such as Desigual, Marc O'Polo, Decor Global, and JOOP trust retraced. More than 80 international fashion manufacturers use the platform to collect and evaluate all data about their supply chains, enabling fair and sustainable manufacturing. The information can be shared internally within the company and externally with customers, business partners, or authorities.
About the funding: For retraced, this is the second round of funding, following on from the previous seed round. The current round is led by ALSTIN Capital, which invests €4 million in the total €6.5 million round. In addition to ALSTIN Capital, existing investor Samaipata and new investor F-LOG Ventures completed the round. The team and the technology behind retraced convinced ALSTIN to make a significant initial investment and expand their compliance portfolio with a transparency and sustainability management solution for the textile industry.
Noel Zeh, Partner of ALSTIN Capital: "We have known the retraced founding team for some time and are impressed by the strong development of the company. We are convinced that retraced will lead the supply chain transparency market in Europe and see a strong match with our European B2B & Regtech expertise.”
In addition to ALSTIN Capital, F-LOG also participated in the financing round. The German venture capital fund invests in disruptive companies from the logistics sector in the areas of logistics and supply chain management.
Samaipata is also participating in this financing round as an existing investor. The Spanish fund for early-stage financing had injected a seven-figure sum into retraced in February 2021.
retraced is a platform for sustainable supply chain management in the fashion and textile industry for the collection, evaluation, and management of supply chain compliance data. The platform connects all parties involved in apparel manufacturing and provides digitized, standardized, and efficient communication processes. This enables companies to collaborate and gain a clear overview of their supply chains, trace raw materials back to their origin, anticipate risks, and thus optimize their supply chains in terms of social and environmental aspects. This not only ensures that they can comply with government due diligence requirements for supply chains, such as the UFLPA, but also that they can take action and implement strategies to achieve more sustainable and responsible production practices. The information gained can be shared internally within the company and externally with authorities, customers, or business partners.
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About ALSTIN Capital
ALSTIN Capital is an independent venture capital fund based in Munich, Germany. ALSTIN Capital invests in fast-growing technology companies that have the potential to leverage the significant market potential of the future and become market leaders. ALSTIN Capital does not only invest in convincing technology, but above all in the entrepreneurs behind the technology. ALSTIN Capital supports their entrepreneurs with capital & know-how so that they can grow faster and more successfully. The basis of their investment is the conviction that entrepreneurial know-how, many years of transaction experience, international networks & sales excellence are the success factors for sustainable growth.
F-LOG is an independent venture capital fund specializing in logistics and supply chain management startups. The focus is primarily on founding teams that pursue a technology-driven approach and require seed or Series A financing. F-LOG Ventures sees itself as a partner in crime and actively helps the founders with a strong network in logistics and industry as well as with entrepreneurial experience and passion.
Samaipata is a pan-European early-stage venture capital firm. The investment fund was founded by two entrepreneurs, José del Barrio, co-founder of the leading food delivery platform in Spain, which was sold to Rocket Internet for $100 million, and Eduardo Díez-Hochleitner, senior executive, successful business analyst and current Chairman at MásMóvil.