Inditex SA, the company that owns the Zara apparel chain, is considering creating a vehicle to invest in start-ups and technology that it hopes will help it run its business more sustainably, according to someone with knowledge of the situation.
The initiative could see the fashion store establish an internal venture capital fund or become the anchor investor in a fund with several other companies. One source stated that the investment would be on a minor scale. The business may opt not to move forward with the idea since no decision has yet been taken.
Inditex has recently made investments in companies creating novel textiles. The Spanish business last year participated in a $30 million fundraising round coordinated by Bill Gates’ Breakthrough Energy Ventures for textile recycler Circ. A Zara line of apparel built from a combination of recycled and new materials was introduced in April by Inditex and Circ.
Additionally, Inditex has agreed to pay €100 million to acquire 30% of the upcoming production over a three-year period of Finland-based Infinited Fibre. The dedication is anticipated to assist the recycling business in scaling its technologies. Hennes & Mauritz AB, the parent company of Calvin Klein, PVH Corp., and Patagonia all support Infinited.
Inditex’s sustainability innovation centre, a division established four years ago to examine novel materials, technologies, and procedures that may lessen the company’s environmental impact, is the driving force behind these projects.
