Swedish startup Syre secures $100 million – transforming the textile industry in just two months

Two months after its launch, Syre, a Stockholm-based textile impact firm founded by Vargas Holding and H&M Group, successfully closed a Series A funding round, garnering $100 million, around €92.20 million. TPG Rise Climate spearheaded this funding effort and saw participation from notable investors, including H&M Group, Giant Ventures, IMAS Foundation, Norrsken VC, and Volvo Cars.

Joerg Metzner from TPG Rise Climate emphasized Syre’s mission to speed up the process of cutting CO2 emissions in the textile industry. Syre uses a new recycling method to turn old clothes into high-quality polyester, a greener option than new polyester.

“We look forward to accelerating the decarbonization of the textile industry through Syre’s unique textile-to-textile recycling process”, says Joerg Metzner.

Syre’s global textile recycling initiative

The funding will allow Syre to set up a prototype facility in the United States, which they aim to have ready by the end of the year. The company also plans to open two major recycling plants in Vietnam and Iberia, both important textile regions.

These areas offer a skilled workforce, raw materials, good logistics, and energy. Construction for these plants is expected to start in 2025.

Expressing enthusiasm about the significant backing from international investors, Syre’s CEO, Dennis Nobelius, emphasized the company’s mission to enhance the textile industry’s sustainability.

“We completed a rigorous search and evaluation of 20+ polyester recycling technologies worldwide. That’s how we found Chris Luft and Matthew Parrott, founders of Premirr,” says Dennis Nobelius.

R&D center in the US

The core of Syre’s recycling operations lies in the vital patented technology they obtained from the US-based company Premirr. This pivotal technology has been in development for nine years and plays a crucial role in Syre’s eco-friendly advancements.

Syre’s R&D center in North Carolina, near the Research Triangle Park, will continue its growth and development. The name ‘Syre’ derives from the Swedish word for oxygen, embodying the essence of continuous renewal. This initiative drives the green transformation of the textile industry.

Among the investors in Syre’s recent funding round is Giant Ventures, which focuses on supporting founders tackling major global issues across multiple sectors. Also contributing was the IMAS Foundation, which is linked to the INGKA Foundation, the main owner of IKEA stores. Norrsken VC, known for investing in early-stage impact projects in Europe, participated as well.

Additionally, Volvo Cars, which aims to transition to a fully electric fleet by 2030 and achieve net-zero emissions by 2040, was a strategic partner in the round.

With support from various investors and partners, Syre aims to lead the global move towards sustainable practices in the textile industry. By focusing on textile-to-textile recycling, Syre is set to make a big impact on a large scale.