Barclays has spearheaded a $6.6 million seed funding round for Responsible, a company that has developed an embedded finance platform aimed at fostering circularity within the fashion industry.
Founded in 2021 by Irish entrepreneur Mark Dowds and Australian Mitch Doust, Responsible offers a technology platform called Buy Back. This platform provides both shoppers and brands with insights into the value of returned garments. Dowds states, “The fashion industry produces billions of items annually, yet only 5-7% of those garments are resold. Our mission is to hold brands accountable for their production and enable them to benefit financially from a more sustainable and circular business model. Just as data sources like Black Book and Glass’s Guide revolutionized the automotive sector, we intend to do the same for fashion.”
The Buy Back technology is seamlessly integrated at the point of sale, allowing consumers to understand the residual value of the items they purchase. Shoppers can wear the garments and return them at any time for credit based on the Buy Back price disclosed at the time of purchase.
Currently, the Buy Back plugin is available within the Shopify ecosystem, and the newly acquired funding will be utilized to broaden the company’s presence across Europe and enhance its network of brand partnerships.
Andy Challis, co-head of principal investments at Barclays, commented, “Innovation in the fashion industry is crucial for reducing global carbon emissions, and Barclays is excited to support Responsible as it continues to scale and tackle this challenge. Responsible has introduced a groundbreaking model that promotes circularity in fashion, collaborating directly with brands to extend the lifecycle of garments and drive change across the sector.”
Another UK-based circular economy fintech, Twig, has also been in fundraising mode, securing $35 million from a consortium led by Fasanara Capital, along with backing from executives representing luxury brands like LVMH, Valentino, and Swarovski. Similar to Responsible, Twig allows users to sell or trade in clothing and electronics for instant cash, which can be applied to future purchases.
Furthermore, Twig is set to enhance its offerings by incorporating a cryptocurrency feature. Launching in partnership with select collaborators later this year, Twig’s platform will enable users to trade both digital and physical items for cash or in exchange for digital assets such as cryptocurrencies and non-fungible tokens (NFTs).