FARO Raises $6 Million to Tackle Fashion Waste in Africa

David Torr, Faro Co-Founder and Co-CEO

South African startup FARO has secured $6 million in funding to make fashion more affordable while addressing textile waste in Africa. The investment was led by Bloomberg President JP Zammitt, alongside notable VC firms like Presight Capital and Garage Ventures, as well as individual investors including Mato Perić (MPGI), Leonard Stiegeler (Pulse), and Oliver Merkel (Flink).

Founded in 2024, FARO has redefined retail with its recommerce model, sourcing unsold inventory and overstock from brands such as ASOS, Boohoo, and Levi’s. The company offers discounts of up to 70%, appealing to cost-conscious consumers while promoting sustainability. FARO began with a pop-up store in 2023, generating $100,000 in its first month. With only four stores, it exceeded $2.3 million in revenue last year—20 times its initial projections.

The startup now plans to expand to 1,000 locations within the next decade, focusing on emerging markets and using regional pricing strategies. Its inventory comprises 40% reconditioned returns and 60% overstock, directly tackling the environmental and economic challenges posed by fashion waste.

CEO David Torr stated that FARO’s approach not only supports a circular economy but also ensures affordability for consumers while reducing the industry's environmental footprint.

Source: TechPoint Africa