Financing Circularity: eBay's Circular Fashion Fund

Every year, an alarming 92 million tonnes of garments are discarded, cluttering landfills and harming our environment.

Initiated in 2022, eBay's Circular Fashion Fund (CFF) is dedicated to enhancing circular fashion—a systematic approach to economic development designed to benefit businesses, society, and the environment.

Circular fashion revolves around extending the life cycle of products, maximizing the use of existing materials, and reducing waste. It includes initiatives such as repair programmes, recycling efforts and promoting the reusability of materials. Learn more about circular fashion strategies here.

The CFF is investing US$1.2m by 2025 across the UK, US, Germany and Australia to promote sustainable fashion and tackle the critical issue of clothes waste.

This expansion not only broadens the geographical reach but also deepens support for start-ups, empowering them to develop more sustainable business models that could revolutionise fashion industry practices globally.

Beyond waste reduction, the CFF aims to tackle Scope 3 emissions, particularly targeting Category 1, which covers Purchased Goods and Services, and Category 12, End-of-Life Treatment of Sold Products. By endorsing start-ups that provide services like renting, repairing, and recycling, eBay mitigates the emissions linked with both the creation of new clothing and the disposal of used ones.

The fund's influence extends to Category 4 (Upstream Transportation and Distribution) by promoting local repair services that diminish the necessity for long-haul transport. It also impacts Category 11 (Use of Sold Products) by increasing the life span of garments through initiatives such as at-home repair kits and recycling programmes, underscoring eBay’s holistic approach to fostering sustainability in fashion through the entire product lifecycle.

Financing circularity

Now in its third year in the UK and having successfully entered Australia last year, the CFF is preparing to launch in both the US and Germany. It is poised to offer US$1.2m in total investments to start-ups specialising in circular fashion solutions, complemented with more than 200 hours of mentoring and networking guided by industry experts.

The 2025 cohort will see an exciting new component—eBay Ventures.

This venture capital arm of eBay will crown one start-up as 'Circular Fashion Innovator of the Year' and provide an additional US$300,000 to help scale their solution.

"The Circular Fashion Fund 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," says Kirsty Keoghan, eBay’s Global GM of Fashion.

"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."

Partnering for sustainability

The CFF partners with major fashion councils like the British Fashion Council, Council of Fashion Designers of America, Fashion Council Germany, and the Australian Fashion Council. These alliances enhance the fund's impact by supporting start-ups at the cutting edge of circular solutions.

"Building on the success of the past two years, we remain focused on boosting excellence and innovation in the British fashion community," adds Caroline Rush, CEO of the British Fashion Council. 

"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."

A past beneficiary, Swoperz—a children's clothing swap service—has significantly expanded due to the support from the CFF.

"Winning the Circular Fashion Fund has been transformative for Swoperz," says Co-Founder Vicky Fuller. The initiative has allowed them to reach out to new partners and introduce sustainable fashion into classrooms across the UK, ensuring a brighter, more sustainable future for the next generation.

Looking to 2025 and beyond

The Circular Fashion Fund invites fashion start-ups to innovate and evolve, contributing to a sustainable industry future. The combination of financial support, expert mentoring, and strategic partnerships aims to maximize the potential of these emerging businesses to reimagine how fashion is produced, used and repurposed.

eBay’s Circular Fashion Fund champions circular solutions designed to reduce emissions, minimise waste, and make a substantial difference in the ongoing battle against climate change, paving the way towards a more sustainable and environmentally responsible fashion industry.

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