Lululemon, a company specializing in activewear, has participated in the $30 million Series A funding round for Syntetica, a French startup that has created an innovative method for recycling nylon, which is both valuable and challenging to reuse.

Syntetica claims it can recycle two varieties of nylon — Nylon 6 and Nylon 6,6 — which are difficult to separate from each other in consumer textile waste, according to its CEO Marco Bertone in an interview with TechCrunch.

As vast amounts of clothing pile up in landfills annually, a major motivator for the fashion industry to pursue increased circularity is consumer viewpoints, particularly among high-end clothing brands. Companies like Syntetica also gain advantages from favorable regulations and recent price fluctuations that have notably impacted nylon.

In the past six months, geopolitical issues in the oil sector have resulted in frequent negotiations over nylon prices, Bertone noted. “It’s served as a wake-up call for many brands dependent on petrol-derived nylon and synthetic materials for their pricing strategies, which are now experiencing significant disruptions.”

As per Bertone, this aligns well with Syntetica’s practical outlook. “We’ve established the company with the understanding that there is no green premium. To expand genuine solutions for a sustainable future, it must be cost-effective, scalable, and built on partnerships from the outset.”

The startup collaborates with brands including Lululemon, Victoria’s Secret, and Etam, with a recycling initiative set to launch commercially early next year. Syntetica’s Series A was also supported by a major apparel manufacturer, MAS Holdings — “a testament to the seriousness of the issue,” Bertone remarked.

It is quite rare for a supply chain participant to invest in a company that hasn’t yet reached significant scale. However, prior to its Series A, Syntetica had formed a partnership with Michelin’s Centre for Sustainable Materials to create a commercial demonstration facility in Clermont-Ferrand, the industrial firm’s hometown.

Unlike other startups in the same sector, Syntetica will not manufacture textiles or create new materials. Instead, its recycling process will yield pellets, which can then be utilized by others to produce yarn for brands like MAS. “This illustrates a narrative of practical industrial collaborations with the right partners to secure buy-in from the entire value chain,” Bertone expressed.

With a background in fashion and second-hand online sales, Bertone serves as the business strategist for Syntetica. Through the matchmaking accelerator program at Paris’s Station F, hosted by Entrepreneur First, he collaborated with chemist Louis Monsigny. Their partnership was strengthened in Reims, where they utilized the AgroParisTech laboratory. 

Since then, they have also brought on a CTO, Ash Ward, who previously worked at the unsuccessful battery firm Northvolt, founded by Peter Carlsson, who is one of Syntetica’s advisors. For Bertone, their experiences and insights from navigating the challenges of scaling equip them with the knowledge of when and where to take chances. 

“As a startup, we must be willing to take more risks than established industrial players; otherwise, innovation would stall. However, there’s a boundary— if you spread your risks too thin, things can get complicated,” he stated. That’s why Syntetica is not diversifying at this stage. 

While it could potentially recycle other materials or expand into different industries in the future, its primary goal is to utilize its funding to prove its capacity to generate hundreds of tons of pellets annually and supply them to clients within the apparel supply chain. After that, Bertone remarked, “Syntetica plans to establish facilities globally, situated near waste sources and textile production sites.”

Although it harbors international aspirations, the startup benefits from its presence in France. Its Series A was led by the Ecotechnologies 2 fund, which is managed by the Green Venture group at Bpifrance, France’s public investment bank, as part of the France 2030 initiative. It has also received backing from the European Innovation Council (EIC) through equity, grants, and its acceleration program.

For these public investors, startups like Syntetica contribute to a broader strategy aimed at bolstering Europe’s industrial strength while minimizing dependency on fossil fuels. Nevertheless, the startup also intends to generate returns and is supported by private investors like EQT Ventures, SWEN Capital Partners, and family offices.

Syntetica faces competition as well — with some utilizing an enzymatic method to “digest” plastics and chemical titan BASF, which has developed recycled nylon. Still, after participating in industry gatherings, Bertone expresses hope for collective growth. “Even if everyone expands to operate numerous factories, the problem will not be solved,” he remarked. “Collective success is necessary for societal advancement.”

Lululemon has also made investments in other textile recycling startups such as Epoch Biodesign and Samsara Eco.