Spanish multinational clothing company Inditex, owner of Zara and Massimo Dutti, among other fashion brands, has announced a minority stake investment (the sum has not been disclosed) in GALY, a Brazilian and US biotech producing cultivated cotton from plant cells.
GALY was founded in 2019 by Luciano Bueno, a former Deloitte executive. The startup has raised over $33.5 million from notable investors such as Sam Altman, former president of Y Combinator and current CEO of OpenAI, John Doerr from VC Kleiner Perkins, and investment funds such as Material Impact, Agronomics, and Brinc.
According to Reuters, Inditex CEO Oscar Garcia Maceiras says the move aligns with the company’s goal of using 25% new-generation materials by 2030. Inditex has already invested in the sustainable material companies Findland’s Infinite Fiber and the USA’s Circ.
Literally Cotton
Established in Brazil, the company launched its first lab in 2020 to use the power of cellular agriculture to produce sustainable commodity crops, beginning with its first proof of concept, “Literally Cotton.”
With its funding, the startup has scaled and expanded its technology to other materials, opened new offices in Brazil and Boston, Massachusetts, and has grown from eight to fifty employees.
In a milestone for the company, the biotech signed a $50 million purchase agreement with the Japanese company Suzuran Medical to produce medical products such as gauze, absorbent and cosmetic cotton, and sheets with Literally Cotton.
GALY explains that the relationship with Suzuran originated in 2021 when they completed the proof-of-concept evaluation of lab-grown cotton fibers.
“The implications of this achievement are enormous, and the possibilities for innovation and sustainability in the textile industry are boundless,” GALY said in the announcement.
Reshaping traditional industries
Inditex’s investment news follows a recent investigation by UK-based NGO Earthsight, as reported by Euronews. The investigation linked global retailers, such as H&M and Zara, with buying cotton certified as sustainable by Better Cotton. However, Better Cotton is under investigation for approving cotton produced in Brazil’s Cerrado region (the Amazon) despite allegations of illegal deforestation, land grabbing, and human rights violations.
Conventional cotton production is highly resource-intensive, using approximately 2,700 liters of water per t-shirt and millions of hectares of land. Moreover, its production is said to drive desertification, mainly due to deforestation. The industry also faces ethical issues, including slavery and child labor.
In contrast, cultivated cotton offers a sustainable solution: transparent supply chains, no pesticides or insecticides, and cotton types year-round. Additionally, it is less susceptible to climate change impacts than conventional cotton.
“This critical partnership between GALY and Suzuran showcases the power of collaboration between a forward-thinking startup and an established manufacturer. It is a remarkable example of how disruptive technologies can reshape traditional industries, driving them toward a more sustainable future,” GALY shared on social media.
