U.S.-based fashion tech startup Refiberd has been named eBay’s first-ever Circular Fashion Innovator of the Year, earning a $300,000 investment to accelerate its work in advancing circular solutions for the fashion industry.

The investment comes through eBay’s Circular Fashion Fund, which supports innovative startups that are reshaping how clothing is made, used, and reused.

The award recognizes Refiberd’s AI system that can discern exactly what different fabrics are made of, allowing them to be accurately sorted and recycled. Their technology is designed to integrate seamlessly with existing recycling infrastructure, helping recyclers turn textile waste into usable fibers and significantly reducing waste across the supply chain.

Refiberd was selected from a field of 12 startups across the UK, U.S., Germany, and Australia.

“We’re honored to win eBay’s first Circular Fashion Innovator of the Year Award. The investment from eBay Ventures will help us close a significant round of fundraising for the business, allowing us to expand our technology to new recycling partners, strengthen our AI capabilities, and move faster toward our mission of enabling true textile-to-textile recycling,” said Sarika Bajaj, co-founder and CEO of Refiberd.

“The journey for a startup is tough, so having the mentorship and access to eBay and the CFDA’s networks has already proven invaluable. With this added support we can accelerate our impact and help build a future where circular fashion is the norm—not the exception.”

The Circular Fashion Fund, launched in 2022, has now supported 27 businesses globally and is on track to invest $1.2 million alongside over 200 hours of mentoring and upskilling from industry experts by the end of 2025.

“As the pioneering secondary marketplace, eBay has been driving circularity in fashion since its inception 30 years ago,” said Alexis Hoopes, VP global head of fashion at eBay.

“It’s a critical time for the fashion industry, and eBay’s Circular Fashion Fund—and the eBay platform at-large—are propelling the industry forward, enabling innovative ideas to help shape brand and consumer behaviors.”

The fund’s expansion comes as consumer interest in circular fashion continues to rise, particularly among Gen Z, with 66% reporting that buying pre-loved fashion is becoming increasingly important to them.