Good Fashion Fund

What Good Fashion Fund does

Good Fashion Fund is a Netherlands-domiciled impact investment fund, founded in 2019 and managed by Amsterdam-based FOUNT with Fashion for Good as sub-advisor. It targets textile and apparel manufacturers in India and Bangladesh, providing long-term USD-denominated debt (USD 1-2.5 million per investment) to finance the adoption of disruptive sustainable production technologies. The fund requires that each investment delivers at least a 50% reduction in one of three environmental categories — Materials, Energy, or Water — and pairs financing with technical assistance mobilized through Fashion for Good's industry network.

The fund's blended finance capital structure comprises three tranches: junior equity / first-loss capital (USD 12.4 million from anchor investors Laudes Foundation and The Mills Fabrica), senior equity with a 2% preferred return, and senior debt provided by Rabobank. Total fund size is approximately USD 19 million against a USD 60 million target, structured as a ten-year vehicle. As of May 2025, the fund is fully invested across six manufacturers: Pratibha Syntex, Sri Kannapiran Mills, Progress Apparels, Epic Group, KKP Fine Linen, and Sharadha Terry Products.

Good Fashion Fund's proprietary Five Goods Framework (Good Energy, Good Water, Good Materials, Good Lives, Good Economy) is the operational backbone for impact measurement, with environmental verification via the Higg FEM (Sustainable Apparel Coalition) and third-party validation by Bureau Veritas, Sphera, and Fair Wear Foundation. Go-to-market combines direct field outreach, brand-mediated introductions, and industry-association partnerships (notably BGMEA in Bangladesh). A successor vehicle, Good Fashion Fund 2.0, is in development with a USD 60 million target size, expanded geographic scope (adding Vietnam and Turkey), and a dedicated USD 1.5 million Technical Assistance facility.

Name

Good Fashion Fund

Legal name

Good Fashion Fund

Website

https://goodfashionfund.com

Company type

Private

Founded year

2019

Operating status

Operating

Headcount range

1–10 employees

Short description

Good Fashion Fund is a Netherlands-based impact investment fund providing long-term USD debt (USD 1-2.5M) to textile and apparel manufacturers in India and Bangladesh for adopting sustainable production technologies, managed by FOUNT with Fashion for Good as sub-advisor.

Ownership category

akta.pro rank

Headquarters

HQ city

Amsterdam

HQ country

Netherlands

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Interest Income from Loans: The Fund provides long-term USD loans in the range of USD 1 to 2.5 million to textile manufacturers. Revenue is generated through interest payments on these loans, with payback periods matched to technology lifecycles and manufacturer risk appetites.
2. Blended Finance Structure: Capital structure comprising 3 different risk/return layers: Junior Equity/first loss, Senior Equity (preferred return of 2%), and Senior Debt tranche. The 2/1 equity to debt ratio and 10-year fund term enables the blended finance model.
3. Technical Assistance Fees: The fund mobilizes Environmental & Social Expertise, Financial Expertise, and Technical Expertise (through Fashion for Good) for investees, generating fees for advisory and support services alongside financing.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels7 records

Core offering

Good Fashion Fund is a first-of-its-kind impact investment fund that provides long-term USD debt financing (USD 1 to 2.5 million loans) to textile and apparel manufacturers in India and Bangladesh for the implementation of disruptive sustainable production technologies. The fund complements its financing with technical assistance, environmental & social expertise, and a proprietary impact measurement framework (Five Goods), supporting manufacturers in adopting technologies that deliver at least 50% reduction in Materials, Energy, or Water use.

Product overview

Good Fashion Fund is an impact investment fund that provides long-term USD debt financing (USD 1-2.5 million loans) to textile and apparel manufacturers in India and Bangladesh, complemented by technical and environmental & social expertise. The fund operates through its Five Goods Framework (Good Energy, Good Water, Good Materials, Good Lives, Good Economy) to measure impact. Current fund size is approximately USD 19 million with a blended capital structure. A successor fund, Good Fashion Fund 2.0, is under development with a target size of USD 60 million.

Differentiator

Problem solved

Functional benefit

Products and services

• Long-Term USD Debt Financing
• Technical and Environmental & Social Expertise

Quantifiable outcome

• Up to 74% reduction in energy consumption achieved at investee facilities
• +5 more outcomes

Named customers6 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Eight partnerships are on record, tiered key partner, development evaluator, sub-advisor, expert partner and third-party advisor.

• BGMEA (Bangladesh Garment Manufacturers and Exporters Association)key partnerStrategic or Co-development Partner · 1 August 2021BGMEA and GFF signed MoU to support and strengthen development and uptake of innovative sustainability solutions and improve environmental and social sustainability within factories in Bangladesh.
• GlobalCAD (Center of Partnerships for Development)development evaluatorImplementation/ SI/ Consulting Partner · 1 April 2021GlobalCAD partners with GFF as development evaluator to facilitate continuous learning process that generates knowledge and insights on emerging outcomes of operations.
• adelphidevelopment evaluatorImplementation/ SI/ Consulting Partner · 1 April 2021adelphi partners with GFF as development evaluator to generate knowledge and insights on emerging outcomes of GFF operations.
• Fashion for Goodsub-advisorStrategic or Co-development PartnerFashion for Good serves as Sub-Advisor providing unrivalled industry network and technology knowledge. They are the initiating organization behind the Good Fashion Fund and provide strong deal pipeline and access to innovations and technical knowledge.
• Fair Wear Foundationexpert partnerImplementation/ SI/ Consulting PartnerFair Wear provides independent, comprehensive assessments of workers' rights and working conditions at investee factories. They conduct social evaluations through interaction with staff, workers and management both offsite and onsite, aligned with eight core ILO labour standards.
• Spheraexpert partnerImplementation/ SI/ Consulting PartnerSphera serves as expert partner for environmental due diligence, providing third-party verification and assessment of environmental impact of investments.
• Bureau Veritasthird-party advisorImplementation/ SI/ Consulting PartnerBureau Veritas conducted independent verification of GFF investment impact at Sri Kannapiran Mills units, confirming 886,469 kWh annual energy savings and up to 95% yarn waste reduction in 2024.
• Sustainable Apparel Coalition (SAC)expert partnerImplementation/ SI/ Consulting PartnerGFF works with SAC for Higg Index environmental verification and is the first financial investor to join SAC's global membership.

Scale indicators12 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• FOUNT: Amsterdam-based impact investment firm that manages Good Fashion Fund. Directly comparable as the operating GP entity behind GFF and several other emerging-market impact vehicles, including Agri3.
• Fashion for Good: Global initiative accelerating sustainable fashion innovation, serving as sub-advisor to GFF. Directly comparable as an ecosystem peer driving technology adoption and capital deployment across the sustainable apparel supply chain.
• Circulate Capital: Impact investment fund focused on preventing plastic waste in South and Southeast Asia. Comparable as a sector-focused blended finance vehicle providing catalytic capital to address supply-chain sustainability gaps in emerging markets.
• BIX Capital: Dutch impact investment advisory firm with overlapping team relationships (GFF's Fund Director Bob Assenberg sits on BIX's Supervisory Board). Comparable as a small, specialized emerging-markets impact vehicle manager.

Emerging players

• Working Capital (Shared Interest): Early-stage supply chain finance fund targeting sustainable consumer goods producers in developing countries. Comparable mission and structure to GFF, with similar focus on financing small manufacturers in sustainability-critical supply chains.

Broad incumbents

• Closed Loop Partners: Larger circular economy investment platform with apparel/textile programs (e.g., Circular Fashion Fund). Comparable as an established impact investor addressing fashion supply chain circularity and material innovation.
• IDH Sustainable Trade Initiative: Multi-stakeholder foundation convening brands, manufacturers, and investors to drive sustainable supply chains in textiles, among other commodities. Comparable as a sector convener and co-financier of sustainability programs in Asian apparel manufacturing.

Others

• Apparel Impact Institute (Aii): Nonprofit that identifies, funds, and scales apparel industry sustainability solutions. Comparable as an ecosystem peer channeling capital toward manufacturing-level sustainability adoption in the same supply chain GFF serves.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/watch?v=KDWNV0UIw3w
• LinkedInlinkedin.com/company/good-fashion-fund

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments4 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Good Fashion Fund