Finnish fashion tech company Infinited Fiber raises €27M in a development financing round

Infinited Fiber, a Finnish fashion technology company, has announced a €27 million. The round completes a two-part development financing round totaling €40 million backed by Inditex Group, TTY Management, Youngone, and Goldwin, as well as existing investors.

About Infinited Fiber

• Founded by Petri Alava, Infinited Fiber offers patented technology transforming cotton-rich textile waste, such as worn-out t-shirts, jeans, and production scraps, into Infinna, a virgin-quality, versatile textile fiber that mimics the soft and natural feel of cotton.
• Infinna is a biodegradable fabric free from microplastics, promoting circular fashion by enabling garments made with Infinna to be recycled with other textile waste at the end of their life cycle.

• Currently, Infinited Fiber is in the process of constructing its first commercial-scale circular Infinna fiber factory at the site of a discontinued paper mill in Northern Finland. The factory is expected to produce 30,000 metric tons of Infinna annually, sufficient to create approximately 100 million T-shirts.

Investment details

• The fresh funding consists of a two-part development financing round totaling €40 million, with significant investments from new investors in addition to the existing ones.
• The first part of the development financing round was closed in summer 2023. Then, the existing investor VTT Ventures participated in the first closing, while investment companies Security Trading and Nidoco AB participated in both closings of the round.
• The new investors are Inditex Group, the parent company of Zara and other brands, and TTY Management B.V., an asset management company privately owned by Tadashi Yanai. Japanese clothing manufacturers Youngone and Goldwin are also among the new investors who joined in the recent second closing of €27 million.

It is fantastic to have these impactful companies onboard as our new investors. This investment is crucial for further advancing the scale-up of Infinna™, and it underscores the industry’s confidence in our technology as one of the key enablers for circularity in the textile sector,

Petri Alava, co-founder and CEO of Infinited Fiber, says.

The funding will allow Infinited Fiber to construct its first commercial-scale fiber factory in Northern Finland to scale the production of its product, Infinna.