Key Takeaways:
- GALY Co., a climate tech company, has secured $33 million in an oversubscribed Series B funding round led by Breakthrough Energy Ventures (BEV).
- The funds will be used to advance GALY’s research and development, particularly for its flagship product, “GALY Cotton,” which dramatically reduces water, land, and CO2 usage compared to traditional cotton.
- New investors include H&M Group and Inditex, alongside existing supporters like Material Impact and John Doerr’s family office.
- GALY aims to expand its cellular agriculture platform beyond cotton to address broader agricultural markets.
- The company has also secured significant proof-of-concept agreements, including a 10-year, $50 million offtake agreement with Suzuran Medical.
GALY Co., a pioneering climate tech company focused on developing sustainable cellular agriculture products, has successfully closed a $33 million Series B financing round. The round was led by Breakthrough Energy Ventures (BEV), with new participation from global retail giants H&M Group and Inditex. This latest infusion of capital, which surpassed initial expectations, will be directed towards scaling GALY’s innovative cellular agriculture platform and advancing its flagship product, “GALY Cotton.”
Revolutionizing Cotton Production
“GALY Cotton” represents a breakthrough in sustainable agriculture, offering a viable alternative to conventional cotton farming. The product is produced using GALY’s proprietary cellular agriculture technology, which requires 99% less water and 97% less land, while emitting 77% less carbon dioxide compared to traditional methods. The company’s CEO and founder, Luciano Bueno, emphasized the urgency of GALY’s mission, citing the increasing volatility of agricultural supply chains due to climate change.
“We are thrilled to have investors who recognize the crucial role that our climate adaptation technology will play in our daily lives,” said Bueno. “As extreme weather conditions become more frequent, GALY will be ready to better equip our economy to withstand these shocks.”
Strategic Partnerships and Expansion Plans
The participation of industry leaders like H&M Group and Inditex underscores the growing demand for sustainable solutions in the textile industry. Both companies are deeply invested in reducing the environmental impact of their supply chains, with GALY Cotton positioned as a key component of their sustainability strategies.
“GALY’s lab-grown cotton is on the verge of a breakthrough and could reduce reliance on virgin cotton if successful,” said Martin Ekenbark, Circular Innovation Lab Lead at H&M Group. Similarly, Óscar García Maceiras, CEO of Inditex, highlighted the significance of GALY’s technology in transforming the textile industry towards more responsible practices.
Beyond cotton, GALY plans to extend its cellular agriculture platform to other plant-based products, targeting a global agricultural market valued at $1.7 trillion annually. The company’s ambitious roadmap includes reaching cost parity with conventional cotton, making it an attractive alternative for large-scale adoption.
A Robust Investor Backing
The Series B round saw continued support from existing investors such as Material Impact, John Doerr’s family office, and Reaction Global, among others. This robust backing is a testament to GALY’s potential to disrupt the agricultural sector and drive significant environmental benefits.
“Agriculture is arguably the industry most impacted by climate change while also being a major driver of greenhouse gas emissions itself,” said Carmichael Roberts of BEV. “GALY’s cellular agriculture technology provides a solution to these challenges, enhancing resource efficiency and building climate resiliency.”
