In a landmark development for India’s sustainable materials ecosystem, AltMat, a pioneering innovator in next-generation textile fibres, has announced a major funding round with participation from H&M Group, Rainmatter by Zerodha, Turbostart, and Fashion for Good.

The investment marks a significant milestone not only for AltMat but also for the global fashion and textile industry’s shift towards scalable, climate-conscious materials.

This round brings together an exceptional coalition of investors who combine industry expertise, patient capital, and a shared vision for a sustainable future. It also marks two important firsts: H&M Group’s first-ever investment in a next-gen material startup from India, and Rainmatter by Zerodha’s first investment in textile materials — signalling growing cross-sector confidence in deep-tech sustainability ventures.

Founded by Shikha Shah, AltMat transforms agricultural residues into high-performance natural fibres that serve as sustainable alternatives to cotton and linen. These fibres, marketed under the Altag® brand, are designed for fashion and home applications, helping the textile industry reduce dependence on virgin fibres and mitigate agricultural waste pollution.

Speaking on the milestone, Shikha Shah, Founder and CEO of AltMat, said: “I am thankful for every part of AltMat’s journey and am excited to welcome extraordinary investors who believe in our purpose and its power. With their support, we look forward to erasing the problem of agri-waste, empowering farmers globally, and scaling guilt-free materials for fashion and textiles.”

The newly raised capital will enable AltMat to expand its grassroots supply chains with Indian farmers, strengthen research and development, and extend its global market reach. By bridging farm-level circularity with advanced material science, AltMat aims to make regenerative, low-impact fibres a mainstream reality for global fashion brands.

A Strong Vote of Confidence from Global Leaders

H&M Group, one of the world’s largest fashion retailers, expressed strong confidence in AltMat’s innovation.

“AltMat is a very promising material that utilises agricultural residues and turns them into a linen- and cotton-like fibre for fashion and home applications,” said an H&M Group spokesperson. “This is our first textile investment in India, and we are thrilled to work closely with founder Shikha Shah, whose energy and conviction in driving change are truly inspiring.”

Rainmatter by Zerodha, the sustainability-focused investment arm of India’s largest retail brokerage, brings entrepreneurial strength and patient capital to AltMat’s mission of scaling deep-tech innovation for environmental impact. Turbostart, a leading accelerator, and Fashion for Good, a global sustainability platform, add further strategic expertise and ecosystem access. Fashion for Good has been a long-time collaborator of AltMat, supporting its material validation and integration into real-world textile applications.

“We’ve worked closely with AltMat to validate their Altag® technology,” said a spokesperson for Fashion for Good. “With this latest funding round, we’re excited to continue providing critical support for their next stage of growth and accelerate the wider adoption of next-gen fibres across the industry.”

Scaling the Future of Sustainable Materials

As AltMat embarks on this next phase of growth, it represents the rising wave of India-led innovation in circular fashion. By connecting rural livelihoods, biotechnology, and global sustainability goals, AltMat is redefining what the future of materials can look like — responsible, renewable, and rooted in purpose.

“This milestone belongs to our partners and community,” added Shikha Shah. “Together, we are scaling our work with farmers, advancing R&D, and pushing the boundaries to make next-gen materials part of today, for a better tomorrow.”