A Finnish company specialising in the production of recycled textile fibers, Infinited Fiber Company has successfully concluded a significant €40 million series B financing round. This funding is pivotal for the company as it aims to expand the production of its innovative Infinna fiber, which is derived from cotton-rich and cellulose-containing waste materials.
Demonstrating their commitment to sustainability, notable fashion brands joined the funding round as new investors. Some of these included, Inditex Group, the parent company of renowned brands like Zara, and TTY Management, a private asset management firm owned by Tadashi Yanai, the founder and president of Fast Retailing, which includes brands such as Uniqlo and Comptoir des Cotonniers.
Additionally, two prominent outdoor and sports clothing producers, Youngone and Goldwin, participated in the second part of the financing round, contributing to a total raise of €27 million for Infinited.
The initial phase of the financing round was completed in September 2023, attracting investments from existing backers such as H&M Group, Adidas, Bestseller, and Zalando. Following the conclusion of the second part of the round, major shareholders in Infinited now include Inditex, TTY Management, and H&M Group.
Falk Müller-Veerse, Partner, Bryan, Garnier & Co who spearheaded the financing round, emphasised the significance of this deal against the backdrop of impending changes in the fashion and textile industry. He pointed out, with the introduction of new European regulations the demand for sustainable fibers in Europe is projected to triple by 2030.
Bryan, Garnier & Co. led the financial transaction, with analysts foreseeing a substantial increase in global demand for sustainable textiles by 2030, estimating the addressable core market to be approximately €66 billion.
Developed at its Espoo headquarters, Infinited Fiber's solution revolves around chemical recycling. By utilising textile waste and cellulose-rich materials like paper, board, and certain agricultural residues, the company transforms them into 100 per cent circular textile fibers that mimic the look and feel of cotton.
The quality and market potential of these fibers have been validated through long-term purchase agreements, with Inditex alone committing to a contract exceeding €100 million.
