Circ, a textile-to-textile recycling company, has successfully secured $25 million in funding from notable investors, including Taranis, an investment firm linked to oil company Perenco, and Inditex, the parent company of Zara. This funding aims to help Circ scale its innovative recycling technology.
The oversubscribed funding round arrives at a critical time for startups pursuing the transformation of used clothing into raw materials. As brands seek to comply with impending sustainability regulations and meet consumer demands, the sector has faced challenges. Commercial and technical hurdles have inhibited progress for initial pioneers, leading to a decline in confidence.
The Virginia-based Circ plans to use the new funds to navigate these challenges by focusing on engineering detailed plans for a large-scale plant, which it hopes to start constructing within the next 12 to 18 months. The company also aims to expand its commercial team and is considering financing construction through long-term purchase agreements with brands, which would assure banks of a consistent market.
Circ’s CEO, Peter Majeranowski, emphasized the industry’s need to adapt to this new type of supply chain, as traditional sourcing practices do not align with the needs of textile recyclers. The company’s technology shows promise in addressing the complexities of recycling cotton-polyester blends, which are more difficult to process than pure materials.
Taranis’s investment is seen as pivotal, bringing extensive experience in managing large-scale engineering projects. However, the current political climate in the U.S. poses uncertainties, making it unlikely for Circ to establish its first industrial plan in the country.
This investment reflects a growing interest from industrial players in the textile-to-textile recycling sector, signaling potential for future advancements and collaborations.
