Ebay Invests USD 300,000 in Refiberd
Ebay just invested USD 300,000 on American start-up Refiberd as part of Ebay’s Circular Fashion Fund program, which aims to scale sustainable solutions in the much-maligned fashion industry. Refiberd focuses on accurately identifying and sorting textile composition at a large scale. The technology is based on a sophisticated AI system that uses hyperspectral imaging to correctly identify material composition, thus facilitating textile recycling operations, prompting the industry to use upcycled materials and reducing textile waste.
Interestingly enough, whist 66% of Gen Z in the US report interest in pre-loved fashion, start-ups still struggle to scale innovations, as well as to become profitable. In fact, not long ago, Renewcell ceased operating citing financial struggles.
With this investment, Refiberd became the Fund’s Circular Fashion Innovator of the Year. Shortlisted for the award were 12 other companies across Europe, the US, and Australia. Country finalists included start-ups like “SOJO in the UK, which offers door-to-door clothing repair services; Moot in Germany, which provides upcycling solutions for brands; and Shopfront in Australia, which employs AI to streamline multi-marketplace resale processes.”
Since launching in 2022, eBay’s Circular Fashion Fund has supported 27 businesses, and its total investment in circular fashion through the fund is expected to reach USD 1.2 million by the end of 2025. The fund has also provided companies with over 200 hours of mentoring from industry experts. The program is also backed by the UK, German, Australian, and American fashion councils, which seemingly presents award winners with key growth opportunities. However, it’s difficult to take the Circular Fashion Fund’s investment seriously, when their million-dollar investment is nothing but a drop in the ocean for the size of the fashion industry.
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