AltMat Raises Funds from Rainmatter, H&M, Turbostart & FFG
AltMat has announced the successful closure of its latest funding round, attracting investment from Rainmatter by Zerodha, H&M Group, Turbostart, and Fashion for Good. This milestone marks two major firsts — H&M Group’s debut investment in next-generation material innovation in India and Rainmatter’s first foray into textile materials.
Founded by Shikha Shah, AltMat was built on the belief that impact and profitability can and must coexist to create meaningful, scalable change in the modern world. The company addresses two major global issues simultaneously: the massive consumption of pollutive fibres in fashion and the widespread burning or wastage of agricultural residues. Through its proprietary innovation, Altag®, AltMat converts leftover stems from food crops into 100% natural cellulose fibre. The result is a material that rivals conventional fibres in performance while significantly lowering environmental harm.
In just five years, AltMat has progressed from lab research to pilot and industrial-scale production. Along the way, it has developed value chains, proven its technology’s scalability, and gained strong market validation. This blend of scientific innovation, operational execution, and commercial traction has positioned AltMat as an attractive choice for top global and Indian investors committed to advancing sustainability in textiles and related sectors.
The four investors bring together an ideal mix of resources and expertise for AltMat’s next growth chapter. Rainmatter, the investment arm of Zerodha founded by Nithin and Nikhil Kamath, and Turbostart, known for backing growth-stage startups across sectors, contribute entrepreneurial insight and financial strength. Meanwhile, H&M Group, one of the world’s largest fashion retailers, and Fashion for Good, an international innovation platform partnered with brands like C&A and PVH, offer strategic industry access and credibility.
“At Rainmatter, we back entrepreneurs who are rethinking systems for long-term sustainability. AltMat is a case of how Indian entrepreneurs are solving problems that matter globally. By building value for farmers and industries, they’re showing what sustainability at scale truly looks like. We are excited to support Shikha and her team.” — Abhinav Negi, Rainmatter
“Investing in AltMat is not just about backing material innovation, but about enabling a shift in the way our industry sources at scale. We see enormous potential in AltMat’s solution to benefit not just us as a company, but the entire fashion industry in its transition toward a more sustainable future.” — Laura Coppen, Investment Manager, New Growth & Ventures, H&M Group
“The textile industry’s environmental footprint is immense, with billions of tonnes of hazardous fibres consumed annually. AltMat’s IP tackles this challenge by converting agricultural waste into scalable, sustainable fibres. We see AltMat as a pioneer shaping the next wave of sustainable fashion infrastructure. Our investment reflects our conviction in both this opportunity and in founder Shikha Shah’s domain expertise to build a global leader from India.” — Venkat Raju, CEO and Founding Partner, Turbostart Global
“AltMat’s Altag® technology is a great example of how innovation can address multiple challenges at once, turning agricultural residue into high-performance fibres while reducing the environmental impact of fashion. Over the past years, we have worked closely with AltMat to support the validation of their solutions, helping to integrate them into real-world applications. With this funding round, we aim to provide that critical support for their next stage of growth and the wider adoption of next-gen fibres in the industry.” — Katrin Ley, Managing Director, Fashion for Good
With this new round of investment, AltMat aims to expand its grassroots farmer supply chains across India, enhance R&D, and grow its global market footprint. The development marks a pivotal moment for the company as it strengthens its leadership in creating natural materials from agri-residue — a growing global demand in the pursuit of sustainable material alternatives.
“Our journey has been no short of all that it takes to make a shifting wave in ever-existing industries like agriculture and textiles. We are thankful for every bit of it and are excited to welcome extraordinary investors who believe in our purpose and its power. With Rainmatter, Turbostart, H&M Group, and FFG bringing in unparalleled understanding of scaling innovation and access to industry, we are now onto our next phase of progress — Forward and Upwards!” — Shikha Shah, Founder, AltMat