'Ready to scale': German textile recycler raises €18m in fresh funding

The textile and clothing industry is one of the dirtiest industries in the world. Just 0.3 per cent of textile materials come from recycled sources, according to a study of the fashion industry by global impact organisation Circle Economy, backed by The H&M Foundation.

One of the impact firms trying to solve that problem is German startup Eeden, which is developing technology to recycle textiles. According to the company, the technology is capable of processing complex blended materials.

Now, the firm has raised €18m in a Series A round led by Dutch venture capital firm Forbion.

"Over the past few years, we have developed a proven solution that has the potential to meet the industry’s long-term need for cost-efficient and high-performing circular materials," says Steffen Gerlach, CEO and co-founder of Eeden. "With their support, we are ready to scale our technology and turn textile waste into materials the industry truly needs."

Building a demonstration plant

The new funding will help Eeden build a demonstration plant in Münster, optimise large-scale processing and establish commercial projects with key players in the textile industry.

"Eeden has developed a pioneering solution that can make large-scale textile recycling not only technologically feasible, but also commercially viable in the near future," says Alex Hoffmann, general partner at Forbion. "We see tremendous potential in their approach and are excited to support the team as they bring this breakthrough technology to industrial scale."

The funding round also included participation from existing investors, including TechVision Fund, High-Tech Gründerfonds and D11Z Ventures, the early-stage investment arm of the family office of Dieter Schwarz.

The news comes at a time when EU member states are required to implement separate collection systems for used textiles from January 2025.