Retraced Secures €15M to Drive Fashion Traceability and Sustainability Solutions
German startup Retraced has raised €15 million ($16.6 million) in first-round financing, aimed at enhancing its digital traceability platform designed for sustainability management and transparency in the fashion and textile industries. The Dusseldorf-based company, which launched in 2019, offers a cutting-edge blockchain- and cloud-based solution that allows brands to track their products through every stage of the supply chain—from raw material sourcing to retail. This latest investment will support the company’s mission to empower fashion brands globally, ensuring that they meet environmental, social, and governance (ESG) standards, as well as upcoming regulatory demands.
A Focus on Sustainability and Transparency
As the fashion industry faces increasing pressure to address its environmental and ethical impact, brands have turned to platforms like Retraced to meet the growing demand for transparency. Fast fashion has contributed significantly to the industry's sustainability crisis, leading to calls for accountability and responsible practices. In response, Retraced developed a platform that not only provides visibility into supply chains but also helps brands ensure they are compliant with ESG guidelines, using this compliance as a competitive edge.
The platform uses blockchain technology to ensure that every action within the supply chain is transparent and verifiable. Brands are able to trace materials, including textiles, through every stage of production, verifying factors such as ethical sourcing, environmental impact, and working conditions at supplier factories. With these insights, companies can make informed decisions and provide their customers with reliable information about the sustainability of their products.
How the Retraced Platform Works
Retraced’s system functions as a digital chain-of-custody tool that tracks products from the moment raw materials are sourced until they reach consumers. The platform is powered by blockchain technology, ensuring that all data entered into the system is tamper-proof and easily accessible. Brands that use Retraced can display the full journey of their products to customers, allowing them to see where materials come from, how they are processed, and the social and environmental impact of each stage of production.
One of Retraced’s key differentiators is its integration with cloud-based technologies, which allows it to store large amounts of supply chain data. This data includes certifications from sustainability standards, such as Fair Trade or Global Organic Textile Standards (GOTS), and the platform can also be used to verify the accuracy of these certifications.
Industry-Wide Impact
The fashion industry has long been criticized for its lack of transparency, especially when it comes to labor practices and environmental degradation. The adoption of platforms like Retraced is becoming more important as regulations around sustainability continue to tighten. Earlier this year, the European Parliament adopted new proposals aimed at reducing textile waste, which would require fashion brands to take responsibility for the collection and recycling of clothing and footwear.
The EU generates nearly 13 million tonnes of textile waste annually, with less than a quarter of it being recycled. This has driven the need for traceability solutions like Retraced, which helps companies comply with regulations while providing proof of their sustainability efforts. This is particularly important as consumers become increasingly interested in the origins of the products they purchase, with a significant number actively seeking out ethically produced goods.
Expanding Partnerships
Retraced has already signed up major fashion players, including brands like Marc O'Polo, Vaude, S. Oliver Group, and L'atelier Marey. The company’s platform is designed to help these brands achieve their sustainability goals, maintain supply chain integrity, and build stronger relationships with suppliers and customers. By leveraging blockchain technology, Retraced allows companies to verify the authenticity of their claims, further strengthening trust with consumers.
The recent Series A financing round, led by Partech, one of Europe’s largest tech investment platforms, will enable Retraced to expand its platform globally. Other investors in the round include Alante Capital, Alstin Capital, Samaipata, and F-Log Ventures.
The Road Ahead
Retraced CEO Lukas Pünder commented on the funding round, saying, “As the regulatory landscape becomes more complex, our mission to simplify sustainability management and make it more effective is more important than ever.” He added that with the support of investors, Retraced is well-positioned to continue empowering fashion brands to meet their sustainability goals while driving international expansion.
As fashion brands increasingly embrace sustainability, tools like Retraced will play a pivotal role in shaping the future of the industry. The platform’s ability to provide end-to-end transparency helps ensure that products are produced ethically, contributing to a more sustainable and responsible fashion industry.
