FOUNT awarded grant by the Catalytic Climate Finance Facility for Good Fashion Fund 2.0

Published: June 5, 2025

FOUNT has been awarded a scale-up grant by the Catalytic Climate Finance Facility (CC Facility) to accelerate the development of the successor fund Good Fashion Fund 2.0 (GFF 2.0), focused on a just transition in the fashion industry.

Building on the successful deployment of Good Fashion Fund 1 in India and Bangladesh – with six investments in nine factories – GFF 2.0 is being set up as a USD 60 million fund that supports sustainable brands and their suppliers in India, Bangladesh, Vietnam, and Turkey. In addition, a USD 1.5 million technical assistance facility will drive environmental, social, and gender impact.

The CC Facility supports finalizing legal and regulatory structures, market entry analysis, the development of impact frameworks and a gender strategy, as well as refining the technical assistance program strategy for GFF 2.0.

GFF 2.0 will provide non-dilutive and subordinated risk capital (mezzanine financing), together with company-level engagement and technical assistance to accelerate decarbonization, adoption of renewable energy, and improved social and gender outcomes.

All investments under GFF 2.0 will apply a climate and gender lens; promote sustainable strategies among brands and suppliers; foster balanced brand-supplier relations through long-term contracts; and enhance fair and ethical labor practices, particularly for women.

Bob Assenberg, Managing Partner and Co-Founder of FOUNT, stated that the partnership with the CC Facility provides crucial funding to accelerate the setup and development of GFF 2.0, with Convergence and CPI supporting pre-launch activities.

Jayanth Kashyap, Investment Lead at Good Fashion Fund, expressed gratitude to the CC Facility for their trust — the funding and support enable essential activities for the feasibility and innovative structure of the fund, as well as the establishment of key partnerships and investor commitments.

This milestone underscores the growing momentum for catalytic financing in the textile and apparel sector and sets the stage for a more sustainable and equitable fashion industry.