With the support of European growth investment bank Bryan Garnier & Co, Infinited Fiber Company, has raised €40 million in a two-part Series B financing round.
Based in Espoo, Finland, Infinited has developed a 100% circular technology for converting textile waste or other cellulose-rich waste into their proprietary“Infinna”fibres, which have the same appearance and feel as new cotton.
Bryan Garnier expects a tripling of global demand for sustainably produced textiles to €66 billion by 2030. The apparel industry is facing an urgent need for sustainable solutions. It currently produces 10% of global CO2 emissions and less than 1% of clothes are recycled as clothing, partly due to inadequate technology. While the textile fibre market is growing, brands, consumers and regulators are increasing their focus on circularity.
"Not least due to the new European regulations, the market demand for sustainable fibres in Europe is expected to almost triple by 2030 to nearly four million tons per year," says Falk Müller-Veerse, German partner at Bryan, Garnier & Co., who led the financing round.
Under the pressure of legislative measures and in response to a growing number of environmentally conscious consumers, 100 of the world's most respected fashion brands (including Nike, Gucci, Chanel, Burberry, Levis and Gap) have committed to reducing their greenhouse gas emissions by 30% by 2030.
World Resources Institute research shows textile production accounts for about 20% of global water pollution while the production of a single cotton T-shirt requires about 2,500 litres of fresh water. According to Infinited Fiber, using their innovative material instead of pure cotton, results in about 97% less water consumption and about 67% lower CO2 emissions per T-shirt produced.
Müller-Veerse emphasizes: "It's not just about replacing cotton production with its horrendous water consumption. The new material could also replace up to 20% of the polyester fibres used worldwide today and is completely biodegradable without bioplastics."
Following the new financing round, the new investors are the Inditex Group (parent company of Zara and other brands) and TTY Management B.V., a privately owned asset management company by Tadashi Yanai, Chairman, President, and CEO of Fast Retailing (parent company of the Uniqlo fashion brand). The leading outdoor apparel manufacturer Youngone (YOH CVC Fund 1 Limited Partnership) and the Japanese premium sportswear manufacturer Goldwin (Goldwin Play Earth Fund Investment Limited Partnership) have also participated in the recently concluded second financing round amounting to 27 million euros.
The first part of the development financing round, completed in the summer of 2023, included investments from existing investors, including H&M Group, Adidas, BestSeller, and Zalando. Following the completion of this financing round, Inditex, TTY Management, and H&M Group are the largest shareholders of Infinited Fiber Company.
Several limited-edition clothing collections, such as Wrangler jeans and Tommy Hilfiger T-shirts, have already been made with the new fibre, The company aims to play a significant role in reshaping the conventional material flow in the fashion and textile industry towards a circular economy and is supported by leading international consumer brands such as H&M, Inditex, Patagonia, and PVH.
"They have tested the quality of the fibre and confirmed the market potential by signing partially long-term supply contracts worth more than 200 million euros. Inditex alone has signed a contract worth more than 100 million euros," says Müller-Veerse.
Infinited Fiber currently operates two pilot production plants, and the newly raised funds will be used to enable the company's further growth, including the selection of the most practical location, the best partners, and the implementation model for the first commercial-scale factory, which is planned to be built by 2025.