Ebay has announced a 300,000 dollar investment in Refiberd, crowning the US-based startup as its Circular Fashion Innovator of the Year. The funding comes as part of the online marketplace’s global Circular Fashion Fund program, which aims to scale sustainable solutions in an industry increasingly under pressure to reduce its environmental footprint.
Breaking down textile barriers
Refiberd’s technology addresses one of the fashion industry’s most persistent challenges: accurately identifying and sorting textile composition at scale. The company has developed a sophisticated AI system utilizing hyperspectral imaging that can precisely determine fabric composition, enabling more efficient recycling processes and potentially transforming textile waste into viable new materials.
“This investment represents a critical juncture for fashion technology,” said industry analyst Marcus Chen at Cambridge Associates. “The sector has long struggled with the technical barriers to true circularity, particularly in fiber identification and processing.”
The funding landscape for emerging fashion technology ventures remains challenging despite growing consumer interest in sustainable alternatives. According to industry data, while 66 percent of Generation Z consumers report increased interest in pre-loved fashion purchases, early-stage companies often struggle to secure the capital necessary to scale promising innovations.
Accelerating innovation through strategic support
Sarika Bajaj, co-founder and CEO of Refiberd, highlighted the importance of the investment: “The journey for a startup is tough, so having the mentorship and access to eBay and the CFDA’s networks has already proven invaluable. With this added support we can accelerate our impact and help build a future where circular fashion is the norm—not the exception.”
The award follows a competitive selection process that saw 12 shortlisted businesses across the UK, US, Germany, and Australia vying for recognition. Country finalists included 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. Each country finalist received grants starting at 50,000 dollars.
“As the pioneering secondary marketplace, eBay has been driving circularity in fashion since its inception 30 years ago,” said Alexis Hoopes, VP Global Head of Fashion at eBay. “It’s a critical time for the fashion industry, and eBay’s Circular Fashion Fund—and the eBay platform at-large—are propelling the industry forward.”
The investment comes at a pivotal moment when fashion’s next generation of designers and entrepreneurs face unprecedented capital constraints. Many innovative startups struggle to bridge the gap between proof-of-concept and commercial viability—particularly those focused on sustainability solutions that require significant technological development before yielding returns.
Since launching in 2022, eBay’s Circular Fashion Fund has supported 27 businesses and is projected to invest a total of 1.2 million dollars by the end of 2025, along with providing over 200 hours of mentoring from industry experts. The program operates in partnership with fashion’s leading councils—the British Fashion Council, Council of Fashion Designers of America, Fashion Council Germany, and Australian Fashion Council—giving recipients unparalleled industry access and visibility.
For young designers and fashion technology entrepreneurs, such initiatives represent rare opportunities to secure both funding and institutional support in an increasingly competitive market. Industry experts note that programs blending financial investment with mentorship and industry connections are particularly valuable for ventures attempting to bridge innovation with commercial viability.
The selection of Refiberd signals growing investor confidence in technological solutions that can be integrated into existing recycling infrastructure—potentially offering scalable approaches to fashion’s sustainability challenges without requiring wholesale system redesign.
