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BERLIN - European online retailer Zalando has announced an investment in recycled textile manufacturer Infinited Fiber Company which produces cellulosic fibre from textile waste.

Zalando's funding will be used by the Finnish company to boost production at its pilot plant and to prepare for the building of its new 30,000 metric tons per year €220 million (US$257m) flagship factory.

It completes a recent funding round which was led by Swedish fashion company H&M, and which also involved sportswear giant Adidas and Danish retailer Bestseller's investment arm, Invest FWD A/S.

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