Responsible, an embedded finance company designed to make the fashion industry more circular, has secured $6.6m from a seed round held by Barclays.
Founded in 2021, Responsible has developed a technology platform called Buy Back that has been created to provide shoppers and brands with an overview of the value of returned clothes.
According to Finextra, the technology is integrated at the point-of-purchase to inform shoppers of the residual value of the item they are about to buy. The shopper is free to wear the garment and return the product at any point in the future in exchange for credit at the Buy Back price stated at purchase.
The funding raised by Responsible will be used to expand its reach throughout Europe and widen its network of brand partnerships.
Responsible co-founder Mark Dowds said, “The fashion industry manufactures billions of items every year and only 5-7% of these clothes are sold for a second time. We are enabling brands to not only become accountable for everything they produce, but also to financially benefit from a more circular and sustainable business model. Data sources like Black Book and Glass’s Guide transformed the automotive industry, we plan to do the same in fashion.”
Barclays co-head of principal investments Andy Challis added, “Innovation in the fashion industry is critical in reducing global carbon emissions, and Barclays is delighted to support Responsible as it continues to scale and address this issue. Responsible has developed an innovative model which enables circularity in the fashion industry, partnering directly with brands to extend the life of garments and impact sector-wide change.”
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