Team Startupcity

• FOUNT received an undisclosed grant from the Catalytic Climate Finance Facility for the $60 million Good Fashion Fund 2.0.
• The fund will provide capital to SMEs in textile and fashion supply chains in India, Bangladesh, Vietnam, and Turkey.
• The CC Facility will support a $1.5 million initiative for compliance and gender equity.

FOUNT, a Netherlands-based impact investment firm, has obtained grant capital to finance its second fashion fund, the $60 million Good Fashion Fund 2.0 (GFF 2.0). The grant of undisclosed amount is provided by the Catalytic Climate Finance Facility (CC Facility), a partnership between advisory company Climate Policy Initiative (CPI) and Convergence, a global network dedicated to blended finance.

The GFF 2.0 seeks to supply non-dilutive and subordinated risk capital to small and medium-sized businesses (SMEs) that are part of the textile and fashion supply chains in India, Bangladesh, Vietnam, and Turkey. FOUNT, which successfully completed its sixth and last investment in the $19 million Good Fashion Fund, intends to use the grant towards completion of legal and regulatory frameworks, new market entry analysis, impact framework development, and a gender strategy implementation.

Furthermore, the CC Facility will help develop strategies for a dedicated $1.5 million technical assistance facility that will ensure environmental, social, and regulatory compliance, among other things, as well as support gender equity.

Jayanth Kashyap, investment lead at the Good Fashion Fund, underscored the significance of receiving this grant in accelerating the preparations necessary for the launch of the fund. He said the CC Facility will also gain access to the Convergence and CPI investor network, supporting fundraising activities with the aim of raising a first close of $25 million by year-end and a final close in 2026.