Grant awarded to support Good Fashion Fund 2.0
-Press release provided by Good Fashion Fund
Amsterdam, Netherlands – 5 June, 2025 – Fount has secured a scaling grant from the Catalytic Climate Finance Facility (“CC Facility”) to accelerate the development of Good Fashion Fund’s follow-up fund – Good Fashion Fund 2.0 (“GFF 2.0”) focused on enabling a just transition for the fashion industry.
FOUNT and the Good Fashion Fund are proud to announce that they have been awarded a grant from the Catalytic Climate Finance Facility (“CC Facility”), aimed at supporting the development of its successor fund, Good Fashion Fund 2.0, from concept to launch. Building on the track record of Good Fashion Fund 1 – which successfully deployed six investments in India and Bangladesh across nine factories, GFF 2.0 is envisioned as a USD 60 million fund partnering with sustainable brands and their suppliers in India, Bangladesh, Vietnam and Turkey to adopt renewable and energy-efficient technologies. This will be paired with a USD 1.5 million Technical Assistance facility for driving environmental, social, regulatory compliance and gender equity.
The CC Facility will provide essential support for finalizing legal and regulatory structuring, new market entry analysis, development of impact frameworks, and gender strategy. Additionally, the CC Facility will support strategy refinement for GFF 2.0’s Technical Assistance facility.
GFF 2.0 will provide non-dilutive and subordinated risk capital (mezzanine financing), corporate-level engagement, and technical assistance aimed at accelerating decarbonization, renewable energy adoption, and improving social and gender outcomes. GFF 2.0 will apply both climate and gender lenses to all investments, accelerate brand and suppliers’ strategies and commitment to sustainability, facilitate equitable brand-supplier relationships through long-term commitments, and promote fair and ethical labour conditions for workers, especially women.
Speaking on the partnership, Bob Assenberg, Managing Partner and Co-Founder FOUNT, “We are thrilled about the cooperation with the CC Facility as it provides us crucial funding to accelerate the set-up and development of GFF 2.0, with on-demand resources from Convergence and CPI to support the fund’s pre-launch requirements. There is an urgent need to reimagine traditional models and strike a more deliberate balance between profitability, environmental stewardship and ethical labour practices. We believe the GFF 2.0 is a step forward in that direction.”
Jayanth Kashyap, Investment Lead of Good Fashion Fund commented “We thank the CC Facility for their trust in our mission as the funding and support will enable us to conduct key activities to demonstrate the fund’s feasibility and innovative structure while helping establish vital non-investor partnerships and attract investor commitments. As the first and only impact fund globally with a track record of investing in SME manufacturers, we aim to scale and showcase our impact through this partnership model with sustainability-oriented brands and their suppliers.”
This milestone underscores the growing momentum for catalytic finance in the textile and apparel industry, setting the stage for a more sustainable and equitable fashion industry. Read more here.
The Good Fashion Fund (GFF), is initiated by Fashion for Good and is a collaboration between Laudes Foundation, The Mills Fabrica and FOUNT complemented by Rabobank as lender to the Fund. The Fund provides long-term USD loans in addition to technical and environmental and social expertise to manufacturers in Asia, primarily India and Bangladesh. Financing is to be used to invest in impact equipment that deliver both economic growth and good fashion practice. The Good Fashion Fund has a blended capital structure with an actual fund size of USD 19 million. The Fund is managed by FOUNT, a leading impact investment firm from the Netherlands.
Current partners of the GFF also include Pratibha Syntex (India), Sri Kannapiran Mills (India), Progress Apparels (Bangladesh) and EPIC Group (Bangladesh).
Website: www.goodfashionfund.com
LinkedIn: Good-Fashion-Fund
The Catalytic Climate Finance Facility (CC Facility) is a solution to scale climate finance by filling a market gap in mobilizing private capital. The CC Facility provides a range of services to market-ready blended finance vehicles in developing economies to help them expand their reach. Through grant funding, technical support, and a learning hub, the CC Facility accelerates the implementation of high-impact financial structures while providing resources to the broader ecosystem on how to best catalyze climate finance. The initiative is a partnership between Climate Policy Initiative (CPI) and Convergence.
ABOUT FOUNT
FOUNT is a leading impact investment firm providing Investment and Fund Management expertise to drive social and environmental impact alongside reasonable financial return in emerging markets. FOUNT is active in various sectors across emerging economies including sustainable apparel, sustainable agriculture and clean cooking.
