Impact finance for a circular textile supply chain

The Good Fashion Fund is a first-of-its-kind initiative to create systemic change in the textile & apparel industry by financing the implementation of highly impactful & disruptive production technologies in Asia. The Fund targets long term USD debt investments in textile & apparel manufacturers in India, Vietnam & Bangladesh.


Currently, apparel supply chains are plagued by negative environmental and social impacts. While sustainable solutions exist today, there is a lack of capital available to scale these technologies within the supply chain.

The Good Fashion Fund was created to address this gap – connecting the most promising technologies to the industry, to collaboratively tackle its challenges in order to generate substantial and measurable environmental & social impact.


We help manufacturers and operators in building a restorative and regenerative apparel supply chain. This means the use of recyclable and safe materials, clean and less energy, closed-loop manufacturing and the creation of fair jobs and growth.

We provide long term USD debt in addition to technical and environmental and social expertise to the manufacturers to adopt sustainable production.


We all know that ‘business as usual’ will not result in the fashion industry being a true force for good.  Innovation is critically needed.  And yet, without sufficient funding, many innovations are unable to scale.  We are therefore proud to be an anchor investor in the Good Fashion Fund which – with its high risk appetite and focus on getting innovations into the supply chain – will address this finance gap.

Leslie Johnston Chief Executive Officer Laudes Foundation

Challenges that we address

It is critical for SME and larger manufacturers to invest in high-impact technologies and production methods for a sustainable industry. However, circular innovations are not yet being adopted at scale by manufacturers. There is a lack of financial vehicles willing to take the risk investing in new innovations as well as a lack of expertise to assess these innovations.


Current fashion supply chains are extremely polluting and wasteful, challenges include:

  • 3,000 litres of water needed per kg cotton produced
  • > 100 litres of water per kg fabric polluted by hazardous chemicals
  • 20% of industrial water pollution is attributable to dyeing/finishing
  • Over 70% of textiles used end up in landfills


Wide-spread social issues still exist including:

  • Low wage levels
  • Gender inequality
  • Lack of transparency
  • Health and safety issues

Funding Challenges

Scarcity of long-term financing solutions.

  • SMEs have limited access to long-term, risk-tolerant finance from local financial institutions
  • Larger manufacturers have limited access to long-term finance for capex of disruptive, un-tested technologies
  • Lack of local funding

What does the Good Fashion Fund offer to investees?

GFF is positioned to create lasting partnerships between its stakeholders: the technology providers, brands and manufacturers, by driving tech adoption, financing manufacturers, and facilitating brand commitment to create high levels of impact.

Long term USD funding

The Good Fashion Fund targets key challenges faced by textile manufacturers by providing long term USD loans to adopt impact technologies, which matches payback periods of the technologies and risk appetites of manufacturers. These loans to investees are in the range of USD 1 to 2,5 million and they should result at least in 50% reduction of one of the 3 relevant Goods (Materials, Energy and Water)

Mobilizing expertise

Additionally, GFF facilitates high levels of impact through the Five Goods by mobilizing Environmental & Social Expertise, Financial Expertise and Technical Expertise (through Fashion For Good) for its investees. We work closely with our partners including brands, manufacturers, E&S experts, NGO’s and apparel experts such as the Sustainable Apparel Coalition


The Fund is managed by FOUNT which provides ample investment and fund management expertise in emerging countries and cooperates with Fashion for Good, (the Sub Advisor) which provides unrivalled industry network and technology knowledge.

Good Fashion Fund is made possible by

  • Anchor Investor
  • Anchor Investor
  • Fund Manager
  • Sub-Advisor
  • Expert Partner
  • Development Evaluator
  • Development Evaluator

Get in touch with Good Fashion Fund.

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. By pressing ‘Send’, you agree with our Privacy Policy & Terms