SIDBI, FITT–IIT Delhi back Indigotex to scale sustainable denim innovation

New Delhi: In a move that underscores growing institutional support for sustainable manufacturing, the Small Industries Development Bank of India (SIDBI) and the Foundation for Innovation and Technology Transfer (FITT) have invested in deep-tech textile startup Indigotex, aiming to accelerate the commercialization of its proprietary eco-friendly fabric technologies.

The startup, which has emerged from the Indian Institute of Technology Delhi ecosystem, is developing INDIWOOL™ Denim—a first-of-its-kind material that blends indigo-dyed merino wool with biodegradable fibres such as cotton, lyocell, and hemp.

The investment comes at a time when the global textile industry is under increasing scrutiny for its environmental footprint, particularly due to water-intensive processes and microplastic pollution caused by synthetic fabrics. Indigotex is positioning its innovation as a viable alternative, with a focus on fully biodegradable, microplastic-free textiles.

At the core of the company’s offering is a patented indigo dyeing technology that enables the application of traditional indigo shades on wool fibres without compromising durability. In parallel, its ECOTEX processing technology eliminates the use of water and chemicals in denim manufacturing, enabling complete water and chemical savings and reducing energy consumption by up to 85%, according to the company.

Industry stakeholders say such innovations could play a critical role as brands and manufacturers transition toward more sustainable supply chains, particularly in premium and performance apparel segments.

The fresh capital will be deployed to scale production of INDIWOOL™ Denim, expand research into next-generation textile solutions, and build partnerships with domestic and global apparel brands. The company is also looking to strengthen its manufacturing capabilities to support commercial-scale adoption.

The investment highlights the role of public financial institutions and technology transfer bodies in supporting deep-tech ventures that bridge research and market applications. Foundation for Innovation and Technology Transfer, which acts as the industry interface of FITT, IIT Delhi, has been actively enabling commercialisation of research-led innovations, while Small Industries Development Bank of India continues to expand its focus on funding MSMEs and startups in emerging sectors.

With sustainability becoming a key driver of innovation in textiles, companies like Indigotex are seeking to position India as a hub for advanced, environmentally responsible materials. Analysts note that such developments could enhance the country’s competitiveness in the global apparel value chain, particularly as international buyers increasingly prioritise low-impact sourcing.

While still at a scaling stage, Indigotex’s technology-led approach reflects a broader shift in the textile industry—from cost-led manufacturing to innovation-driven, sustainable production.