German fashion e-tailer Zalando has announced an investment in Finnish fashion and textile technology start-up Infinited Fiber Company, which produces cellulosic fiber from textile waste.

Zalando's investment in Infinited Fiber Company rounds out a recent capital round led by H&M Group, which also included Adidas and Bestseller's investment arm Invest FWD A/S.

Zalando's funding will be used by Infinited Fiber Company to prepare for the construction of a flagship factory in Finland, in response to what it describes as rapid growth in demand for its regenerated textile fiber Infinna from worldwide fashion and textile brands.

The company's method transforms cellulose-based raw materials, such as cotton-rich textile waste, into Infinna, a premium-quality regenerated textile fiber with the natural, soft feel of cotton. Infinna is biodegradable, contains no microplastics, and clothing created with it may be recycled in the same way as other textile waste at the end of their lives.

Both companies are also signing a statement of intent, which states that Zalando will provide Infinited Fiber Company with raw materials in the future and that Zalando will use Infinited Fiber Company for its private-label production.

Petri Alava, co-founder and CEO of Infinited Fiber Company, said that they’re happy to welcome Zalando as a new strategic investor into their circle of partners, and consider their commitment as additional proof of the fashion industry's strong conviction in their invention. Zalando's diverse brand portfolio and circularity activities provide an excellent foundation for deepening their partnership and securing feedstock for their flagship plant.

Zalando has committed to applying circularity principles and extending the life of at least 50 million fashion products as part of its sustainability plan by enabling circular choices and pushing behavior change toward circular products and experiences. Collaboration with experts and partners to test and develop circular services and solutions to enable systemic change within the industry is a crucial step toward Zalando's circularity objective of being a completely circular business.

Zalando co-CEO David Schneider, said that they want to be part of the answer for a more sustainable fashion industry. They’re launching cooperation with a circular technology innovator by investing in Infinited Fiber Company to increase the industry share of textiles recycled into new textiles, which is currently at 1%.

Zalando previously collaborated with Fashion for Good, a sustainable fashion innovation platform, and circular.fashion, a Berlin-based business, to create the redeZIGN for Circularity capsule collection, as well as with Ellen MacArthur Foundation to advance the circular economy in fashion.