Online marketplace eBay has announced the expansion of its Circular Fashion Fund, and has opened up applications to businesses and start-up organisations across the European Union, Switzerland, and Canada.
Already with a presence in the US, UK, Germany, and Australia, the fund is casting its net wider to find and support companies doing good work in the circular economy.
Eight selected businesses will each receive $50,000 in funding, alongside mentoring to develop products that extend the life of clothing and reduce textile waste. One standout business will be named the global winner of the Circular Fashion Fund gaining an opportunity to receive an additional $300,000 investment from eBay Ventures.
Applications for 2026 are now open for all markets until 8 March, and the expansion of the programme means total global funding will have reached $1.9 million by the end of the year.
The Circular Fashion Fund has supported more than 25 businesses with funding and mentoring since 2022, helping them access relevant partners, gain introductions, and join the industry networks needed to scale an idea from concept to reality.
Refiberd, a California-based company using artificial intelligence to identify fibre composition in garments to allow for high-precision sorting for textile recycling, was the global winner last year.
Alexis Hoopes, vice president of global fashion at eBay, commented: “When we launched the Circular Fashion Fund, we set out to support the businesses turning circularity from ambition into action.
“Over the past three years, we’ve seen scalable solutions emerge in areas like textile recycling, resale, and repair – but these businesses need capital and support to grow. With this expansion, we’re helping more founders build the infrastructure to make circular fashion an integral part of the fashion industry.”
This year’s cohort will be able to tap into the insights of judges Australian Fashion Council Chair Marianne Perkovic, Council of Fashion Designers CEO Steven Kolb, and Fashion Council Germany CEO Scott Lipinski, as well as Circular Fashion Fund alumni Josephine Philips, founder and CEO of Sojo, and Sarika Bajaj, co-founder of Refiberd.
Bajaj remarked: “eBay’s support has been truly transformative for our business.
“With both funding and mentorship, we’ve been able to scale our technology faster and expand our reach across the circular fashion ecosystem. The programme has also given us access to eBay’s expertise as a long-term player in the industry, opening up new opportunities for collaboration and partnership.”
She added: “Together, this allows us to deliver our solution to a broader network of brands, recyclers, and ultimately consumers who are committed to building a more sustainable future for fashion.”
Earlier this week, eBay published its inaugural Climate Transition Plan which aims to align its business strategy with ambitious climate targets aimed at moving the organisation to a low-carbon future. Take a look at the Climate Transition Plan document here.
[image credit: eBay]
