TrusTrace, a Stockholm-based SaaS startup, raises $24 million in funding to expand its global footprint

TrusTrace, a Stockholm-based SaaS startup and provider of product traceability and compliance, has secured $24 million in growth funding. The funding round was led by Circularity Capital, a specialist investor in businesses contributing to the circular economy, and saw participation from existing investors Industrifonden and Fairpoint Capital.

The increasing significance of traceability in driving sustainable transformation is evident in TrusTrace’s substantial growth, with a five-fold increase in subscription revenue over the past 27 months since the previous growth round in 2021. This growth follows seed funding from Backing Minds in 2019.

Since its inception about eight years ago, TrusTrace has been recognized as the preferred supply chain partner for global fashion brands committed to sustainable practices.  The startup helps manage ESG risks and ensures compliance across intricate supply chains. Major clients include renowned brands like Adidas, Brooks Running, Tapestry, Asics, and others in the apparel, footwear, and luxury sectors. TrusTrace aims to extend its services to regional and mid-size brands in 2024.

Founded in 2016 by CEO Shameek Ghosh and co-founders Hrishikesh Rajan, Madhava Venkatesh, and Saravanan Parisutham, TrusTrace provides a platform for supply chain traceability and compliance. This platform allows brands and suppliers globally to standardize the capture, digitization, and sharing of supply chain and material traceability data. By offering access to validated supply chain data, TrusTrace empowers brands to enhance their understanding and impact on the supply chain, facilitating risk management, compliance, and product claims.

Shameek Ghosh, the CEO of TrusTrace, said the company will use to use the new capital infusion to accelerate global expansion, enhance product innovation, and foster collaborations. The goal is to create a global network where all value chains are traceable, circular, and fair.

Ghosh highlighted the increasing adoption of supply chain traceability among fashion and textile brands to support sustainability goals and remain competitive amid regulatory and consumer pressures. He emphasized that the growth investment reinforces the critical role of traceability in achieving sustainability objectives. The partnership with Circularity Capital was praised for its alignment with TrusTrace’s growth strategy.

“A growing number of fashion and textile brands are adopting supply chain traceability to support their sustainability goals and ensure competitiveness in the face of mounting regulatory and consumer pressure. The completion of this growth investment is further evidence that businesses see traceability as critical to achieving their sustainability goals. Backed by new funding, TrusTrace will further cement its position as the fashion industry’s trusted partner for identifying and managing supply chain risk, ensuring compliance, and driving sustainability across value chains,” Ghosh said.

He added: “We are delighted to be partnering with Circularity Capital for the next phase of our growth, the combination of their specialist expertise in the circular economy and powerful international network makes them a strong value-added investor for us.”

Anders Brejner, Investment Director at Circularity Capital, emphasized the need for a digital backbone to achieve transparency and traceability in global supply chains, praising TrusTrace as a clear leader in this field. With over a billion products tracked through the platform, TrusTrace has become a vital solution for supply chain traceability.

“We see a growing number of global fashion brands looking to transition away from today’s linear ‘take-make-dispose’ model of production and consumption to one that is more sustainable and equitable. We believe this is only possible at scale with the right digital backbone to provide transparency and traceability across complex global supply chains. TrusTrace is a clear leader in this field, with an excellent team, solution, and blue-chip client base – and a great fit with our strategy to back global leaders enabling the circular economy. We are excited to be supporting TrusTrace as it continues to expand worldwide,” Brejner said.

Headquartered in Stockholm, Sweden, TrusTrace has additional offices in India, France, and the US, solidifying its position as a global-scale traceability program for major brands. The platform integrates seamlessly with various stakeholders in the supply chain, providing real-time verified data and supporting the transition to a more sustainable and equitable model of production and consumption.

TrusTrace Founders