Material Exchange

About Material Exchange

Material Exchange, founded in 2017, operates as a B2B SaaS-enabled marketplace for the apparel and footwear industry. Based in Stockholm, Sweden, the company aims to digitize and streamline the material sourcing process, connecting fashion brands with a global network of suppliers. Glenister, the company's CEO, has an extensive background in fashion technology and digital innovation, having previously founded a company focused on fashion workflow that was acquired by PTC in 2017. This experience directly informed the creation of Material Exchange, which addresses the complex and often fragmented relationships between brands and suppliers.

The core of the business is a digital sourcing platform that allows suppliers to showcase their materials through high-quality visuals and standardized data models. For brands, the platform simplifies the discovery of new materials, enabling them to search and filter based on various parameters. A key feature is "Frank," an AI-powered sourcing assistant that helps users find materials, access detailed data, and communicate with suppliers efficiently. The company has also developed 3D scanning technology to create accurate digital representations of materials, reducing the need for physical samples and accelerating decision-making. This digital approach is designed to make material sourcing more efficient, transparent, and sustainable.

The business model is primarily subscription-based, where suppliers pay to be on the platform to manage and exhibit their materials to potential buyers. Material Exchange serves the global apparel and footwear market, working with leading retail brands to digitize and optimize their supply chains. The company has seen significant financial backing, raising a total of $35.1 million over three funding rounds. A major Series A funding round in April 2022, led by Molten Ventures, brought in €25 million, with continued support from previous investors like Partech, Inventure, and Norrsken VC. This capital is being used to expand the product suite and recruit new talent. The company has a global presence, with team members and offices in several countries including the US, Serbia, Italy, the UK, India and China.