FibreLoop Raises $54M Series B to Industrialize Textile-to-Textile Recycling
Lisbon-based FibreLoop closed a $54M Series B led by WasteVC to build the world's first industrial-scale enzymatic textile recycling facility.
Lisbon, Portugal — March 22, 2026 — FibreLoop, the textile recycling innovator, announced today a $54 million Series B round led by WasteVC, with participation from H&M CO:LAB and Circularity Capital.
Deal Summary
| Detail | Value |
|---|---|
| Round Size | $54M |
| Stage | Series B |
| Lead Investor | WasteVC |
| Co-Investors | H&M CO:LAB, Circularity Capital |
| Use of Funds | 30,000 MT/year facility (Portugal), Vietnam expansion |
| Valuation | ~$220M post-money |
The Breakthrough
FibreLoop's proprietary enzymatic process solves the textile recycling industry's biggest challenge: separating blended fabrics. Over 60% of global clothing contains cotton-polyester blends, which no existing recycling process could handle at scale—until now.
Their enzymes selectively digest cotton fibers while leaving polyester intact, producing:
- Pure polyester fiber ready for re-spinning
- Cellulose pulp for regenerated fiber (lyocell-type) production
- 88% total fiber recovery from input garments
The process works regardless of dye color, fabric finish, or blend ratio—critical for handling the heterogeneous waste streams found in real-world textile collection.
Market Context
The fashion industry generates 92 million tons of textile waste annually:
- Less than 1% is recycled into new clothing-grade fiber
- 12% is downcycled into insulation, rags, or stuffing
- 87% goes to landfill or incineration
With EU textile EPR mandates requiring separate collection starting 2025 and recycled content targets under discussion, the demand for fiber-to-fiber recycling capacity is surging. FibreLoop already has offtake agreements with 4 major fashion brands representing 50,000+ tons/year of potential demand.
"We're building the recycling infrastructure that the fashion industry has been promising consumers for years," said Dr. Ingrid Hofmann, FibreLoop CEO. "For the first time, that blended t-shirt you drop off for recycling can actually become a new blended t-shirt—not insulation or landfill."