EBay to invest $1.2 million through its Circular Fashion Fund by 2025

Online auction house eBay, which has long strived to be a destination for treasure hunts and sniffing out deals, plans to seek out new deals of its own through new investments from its Circular Fashion Fund.

Launched in 2022 in the UK, eBay’s Circular Fashion Fund (CFF)  is helping to seed new businesses. The concept is now expanding worldwide.

According to eBay, the CFF will provide an investment of $1.2 million to startups in the global markets by the end of 2025. In addition, it pledged over 200 hours of mentoring and networking support for applicants from industry experts. Past judges have included Hugo Adams, CEO of Kelpi Sustainable Materials and KITX Founder Kit Willow. To further amplify its impact, eBay will choose one winner from the global selection of finalists to become “Circular Fashion Innovator of the Year” and receive an investment of $300,000.

EBay ranks No. 6 in Digital Commerce 360’s Global Online Marketplaces Database. The database ranks the 100 largest such marketplaces by third-party gross merchandise volume (GMV). Digital Commerce 360 projects that eBay’s GMV in 2024 will reach $53.83 billion.

EBay gross merchandise volume by year

EBay’s Circular Fashion Fund expansion

“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 startups,” said Kirsty Keogan, global general manager of fashion at eBay, in a released statement. She added that the initiative is not just about helping to scale circular solutions but 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,” Keoghan added.

The circular economy has become increasingly popular with companies embracing sustainability and less waste.

Ross Lohr, who co-founded Scrappy Socks, a sustainability-focused clothing brand, lauded eBay’s Circular Fashion Fund for embracing the concept.

“EBay’s Circular Fashion Fund presents a noble opportunity for fashion startups to embrace localized circularity,” he said. “By providing funding to scale circular solutions, this initiative encourages entrepreneurs to build on existing models while being intentional about the systems they create for the future.”

He noted that focusing on closing the loop through local resources allows startups to minimize their ecological footprint. Moreover, the efforts may strengthen community ties.

“This fund can inspire emerging brands to innovate sustainably by utilizing existing waste, closing existing linear systems, ensuring that their practices align with local economies,” Lohr said, emphasizing that with the right support, startups can pave a new path in sustainable fashion.

“EBay is proving that products made with intention in circular models prioritizing locality can make a massive difference for the environment while also bringing life back to local economies,” Lohr said, saying that the future of fashion should be intentional about circularity — and equally as focused on keeping that circle small, local, and full of impact.

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