This study focuses on the case of a successful startup apparel company that has achieved both environmental friendliness and strategic effectiveness through a circular function integration strategy in the value chain (VC) in a broad sense. This study shows that the scope of the business environment that should be analyzed for the development of business models and competitive strategies has expanded from the conventional term of “supply chain” to VC in a broad sense. Previous research has emphasized market adaptation and efficient production through interfirm function integration within the traditional supply chain. The case of MUD Jeans Inc., a new Dutch circular jeans company, implies that in the context of circular economy trends, the effort to integrate cross-functions with partner companies needs to be extended to the VC in a broader sense. This type of circular function integration can be supported by innovative stakeholder funding, circular design, strategic alliances with partners, and transparent and traceable information systems.