US$193,780,000+
*Data updated daily at 18:00 EAT
South African recommerce startup FARO has secured USD 6 M in funding to scale its operations and address Africa’s textile waste problem. The round was led by JP Zammitt, President of Bloomberg, with participation from Presight Capital, Garage Ventures, and prominent individual investors, including Mato Perić (MPGI) and Leonard Stiegeler (Pulse).
Founded in 2024, FARO addresses the paradox of unsold inventory in developed markets and the environmental harm caused by secondhand clothing imports in emerging markets. Its model centres on purchasing unsold inventory, including reconditioned returns and overstock items from major brands like ASOS and Levi’s, and reselling them at discounts of up to 70%.
With just four stores, FARO generated USD 2.3 M in revenue last year, outperforming retail benchmarks. The company now plans to scale to 1,000 locations within the next decade, expanding beyond South Africa into other emerging markets. Its inventory strategy and data-driven approach to pricing and demand forecasting are key to achieving this ambitious growth.
“This funding accelerates our mission to create affordable fashion while promoting sustainability,” said CEO David Torr. FARO aims to achieve fivefold growth this year and drive a circular economy by extending product lifecycles and reducing waste.
By combining sustainability, affordability, and technology, FARO is looking to revolutionise Africa’s fashion retail sector while making a significant impact on the global fight against textile waste.