Lululemon backs nylon recycling startup Syntetica in $30M Series A

Lululemon, the well-known activewear brand, has made a significant investment in Syntetica, a French startup that has developed an innovative method for recycling nylon. This funding, part of a $30 million Series A round, positions Syntetica as a key player in addressing the challenges of nylon recycling, a material notorious for its durability yet difficult to repurpose. Syntetica aims to tackle the recycling of two specific types of nylon—Nylon 6 and Nylon 6,6—which are often intermixed in textile waste. CEO Marco Bertone shared with TechCrunch that the startup's approach is timely, especially as the fashion industry faces increasing pressure to adopt circular practices due to rising consumer awareness and environmental concerns. The fashion sector is under scrutiny as millions of garments end up in landfills annually. Bertone noted that the recent volatility in nylon prices, spurred by geopolitical instability in the oil market, has prompted many brands to reconsider their reliance on petroleum-based materials. This shift in the market has made Syntetica's cost-effective and scalable recycling solutions even more appealing to major brands like Lululemon and Victoria’s Secret. The startup is also gaining traction as it partners with established companies, including MAS Holdings, which signifies the growing acknowledgment of the recycling challenge within the apparel supply chain. Notably, Syntetica has teamed up with Michelin to create a commercial demonstration facility in Clermont-Ferrand, France. Rather than producing new fabrics, Syntetica will generate recycled pellets from nylon waste, which can then be used by other manufacturers to create yarn for clothing. Bertone emphasized the importance of building strong industrial partnerships to ensure buy-in from the entire value chain. Bertone, who has a background in fashion and second-hand e-commerce, co-founded Syntetica with chemistry expert Louis Monsigny through the Entrepreneur First accelerator in Paris. They have since expanded their team to include a CTO with experience in the industry. Bertone believes that their combined experiences will guide them in making informed decisions about risk-taking and innovation. Currently, Syntetica is focused on demonstrating its capability to produce substantial quantities of recycled pellets, with plans to establish facilities worldwide, strategically located near waste sources and textile production sites. While the startup has broader ambitions to recycle other materials in the future, it is concentrating on establishing its initial operations. Syntetica's Series A funding was primarily led by the Ecotechnologies 2 fund from Bpifrance, part of France's larger strategy to enhance industrial capabilities and reduce fossil fuel dependency. The startup has also garnered support from the European Innovation Council and private investors, highlighting its potential for both environmental impact and financial returns. Facing competition from various players in the recycling sector, including those using enzymatic methods and established chemical manufacturers like BASF, Bertone remains optimistic. He believes that the industry must collectively succeed to address the global recycling crisis, stating, "If everyone were to scale to tens of factories, we still wouldn’t solve this problem. Everyone needs to succeed for us to succeed as a society." In addition to its investment in Syntetica, Lululemon has also supported other textile recycling initiatives, showcasing its commitment to sustainable practices in the fashion industry.