Syre, Backed by H&M, Secures $100 Million in Series A

Syre, a textile recycling startup co-founded by Harald Mix's Vargas and the fashion giant H&M, has successfully secured $100 million in its Series A funding round. The funding was led by TPG Rise Climate, which contributed $50 million, with additional investments from Giant Ventures, Norrsken VC, Volvo Cars, and the IMAS Foundation. This substantial infusion of capital positions Syre to construct two large recycling plants in Iberia and Vietnam, a strategic move poised to impact the industry significantly.

Operating in stealth mode for the past two years, Syre is dedicated to revolutionizing the recycling of polyester, a prevalent oil-based fiber with a considerable impact on CO2 emissions within the textile industry. The company aims to contribute to 3% of the world's polyester production, necessitating the development of more extensive recycling facilities compared to its current pilot plant in North Carolina, acquired from a small company called Premirr.

Syre's ambitions don't stop there. The company has already secured an off-take agreement with H&M valued at $600 million over seven years and is setting its sights on further expansion into the automotive and furniture sectors. Syre is poised to make a substantial mark on the global textile recycling landscape with its innovative approach and significant backing.

The substantial $100 million Series A funding secured by Syre, under the leadership of TPG Rise Climate, signifies a burgeoning interest in sustainable textile recycling. The collaboration between Harald Mix's Vargas and H&M underscores a concerted effort to revolutionize the mass recycling of polyester, with an ambitious target of contributing 3% to global production. This bold initiative not only promises to reduce the fashion industry's carbon footprint but also aims to create a market for recycled polyester, benefiting investors such as H&M, the IMAS Foundation, and Volvo Cars. This potential impact on the textile recycling industry is a cause for optimism.

The success of Syre's large-scale recycling plants in Iberia and Vietnam is poised to set a precedent, potentially inspiring other industry players to adopt similar sustainable practices. However, the long-term impact hinges on Syre's ability to overcome technical challenges and achieve cost-effective mass production. Additionally, the emergence of potential competitors may intensify the race for dominance within this burgeoning sector.