eBay's US$1.2m Investment Funds Circular Economy Innovation
E-commerce giant eBay is investing US$1.2m to globally expand its Circular Fashion Fund (CFF) by the end of 2025.
eBay has shaped partnerships with the following to enhance the operation:
- The British Fashion Council (BFC)
- Council of Fashion Designers of America
- Fashion Council Germany
- The Australian Fashion Council
The CFF has been active in the UK for three years and two in Australia, with further expansions due to take place.
The US and Germany will receive part of the eBay investment to activate and expand the CFF by the end of 2025.
The eBay Circular Fashion Fund
The CFF is designed to help fashion start-ups scale circular solutions, from production to end-of-life, including rental and repair services — the goal being to emphasise the collective power that big businesses, industry leaders and innovative entrepreneurs can add in order to scale up the sustainable fashion industry.
Since the launch in the UK in 2022, the CFF has helped 15 businesses scale their circular solutions.
One example is The Seam, which allows businesses to offer garment care and repair services at scale to extend the life of clothes.
Another eBay-awarded CFF startup is RCYCL, the creators of the innovative at-home fashion recycling programme for unwearable clothing.
Global finalists receive more than 200 hours of support and mentoring from experts to get their business running, with the winner receiving the Circular Fashion Innovator of the Year title and US$300,000.
What is circular fashion?
Circular fashion represents a future-proof approach to the fashion industry, focusing on sustainability and resource efficiency by creating a closed-loop system.
The principles of the circular economy are blended with sustainable fashion practices, aiming to minimise waste, reuse materials and reduce pollution throughout garment lifecycles.
Globally, 92 million tonnes of ‘unwanted’ and ‘unusable’ clothing end up in landfills annually.
Circular fashion and climate-tech intersect in several key ways to reduce environmental impact and CO₂:
- Material innovation: Development of bio-based and recyclable materials, for example lab-grown leather or algae-based fabrics, align with circular fashion’s sustainability goals
- Carbon capture and dyeing: Carbon capture creates sustainable materials and low-impact dyeing technologies to reduce the fashion industry’s carbon footprint
- Supply chain transparency: Digital solutions like blockchain and AI provide traceability in supply chains — ensuring sustainable sourcing and minimising waste
- Recycling and closed-loop systems: Textile recycling enables the reuse of fabrics without degrading quality, creating closed-loop systems
- Energy-efficient manufacturing: Fashion tech like 3D knitting and additive manufacturing reduces energy consumption and waste in production
- Upcycling and Product-as-a-Service models: AI and RFID tagging improve sorting and disassembly for upcycling
- Circularity metrics: Data-driven tools help track and reduce carbon footprints.
CFF and the BFC
Since 1983, the BFC has focused on the consistent innovation, responsible growth and amplification of the British fashion industry both locally and globally.
The CFF is supporting the BFC for a third year, agreeing with its mission to address the fashion industry’s environmental impact and the ongoing climate crisis.
As part of eBay’s commitment to the circular economy, the global expansion of the CFF extends its reach to invest in businesses that bring new technology and services to the market and help people think and shop differently.
Caroline Rush, CEO of British Fashion Council, explains: “Building on the success of the past two years, we remain focused on boosting excellence and innovation in the British fashion community.
“Small businesses are integral to building an ecosystem that can create specialised solutions and we want to help them scale.
“The Circular Fashion Fund has been a game-changer and we are thrilled to support the new ideas and entrepreneurial spirit from this next cohort.
“Together, we’re making the fashion industry more sustainable, one step at a time.”
The UK winner will receive a £50,000 (nearly US$65,000) cash prize, while the two runner-ups will receive £25,000 (just over US$32,000) each, along with mentoring sessions, educational workshops and networking opportunities.
Vicky Fuller, Co-Founder of Swoperz and the UK 2023 Circular Fashion Fund winner, says: “Winning the Circular Fashion Fund has been transformative for Swoperz.
“It enabled us to partner with new organisations and helped us bring sustainable fashion education to classrooms nationwide and host swap shops at 500 schools.
“Our book, The Swoperz Fashion Show, has been read 653 times, sparking vital conversations about conscious consumption so we can make sustainable fashion a reality for children.
“We're grateful to the CFF for amplifying our mission as we work towards a more sustainable fashion future."
eBay's place in fashion circularity
Founded in 1995, eBay is a global e-commerce leader that connects people and builds communities for economic opportunity.
The technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive, sustainably.
Kirsty Keoghan, Global GM of Fashion at eBay, states: “The CFF is a catalyst for collaboration by combining the global scale and power of established companies like eBay with the creativity and innovation of nimble start-ups.
“We’re not only helping to scale circular solutions but also bringing together the most knowledgeable and respected experts in the industry.
“Together, we’re making a positive impact on the circular economy and truly reshaping the future of fashion.”
The integration of circular fashion with climate-tech innovations offers a powerful approach to making the fashion industry more sustainable.
Platforms like eBay play a key role in this shift by promoting second-hand markets and extending product life cycles, thus reducing waste and supporting circular economy principles.
By leveraging advancements in materials, recycling, supply chain transparency and energy efficiency, circular fashion not only encourages responsible production and consumption but also aligns with climate-tech goals, accelerating the industry’s move towards a more regenerative and climate-conscious future.
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