📈 Funding Success
Faircado, an AI-powered second-hand shopping assistant, has raised €3 million ($3.3M) in a pre-seed funding round. The investment was led by World Fund, a leading climate VC in Europe, with additional investments from Accel, General Catalyst, Lightspeed Venture Partners, NEA, and Northzone via the Slush 100 Startup Prize, as well as Impact Shakers. This funding will help Faircado expand its team, grow geographically into the UK and French markets, and further develop its image recognition technology.
🌱 Company Background
Faircado was founded in 2022 by Evoléna de Wilde d’Estmael and Ali Nezamolmaleki. The Berlin-based startup offers an AI-powered browser extension that helps consumers find second-hand alternatives when shopping online. Faircado’s technology matches product images, titles, and brands to provide users with tailored resale recommendations. Their database includes over 60 million products from 50 partners like eBay, Back Market, and Vestiaire Collective.
🔍 Business Model
Faircado employs a revenue-per-click and commission-based model. They earn a percentage commission on sales generated through their platform to partner sites and charge a fixed fee for each user redirected to these platforms. The extension currently supports over 1,600 websites, including Amazon, Zalando, Patagonia, and Apple. Plans are underway to expand offerings to furniture and children’s items.
♻️ Sustainability Goals
By 2030, the second-hand clothing market is expected to surpass fast fashion, driven by Gen Z’s demand for sustainability. Faircado aims to increase the global recycling rate, which is currently about 7%. Co-Founder and CEO Evoléna de Wilde d’Estmael stated, “With this latest funding, we aim to make sustainable choices more accessible and mainstream for millions of consumers.” Tim Schumacher, General Partner at World Fund, added, “We see immense potential in Faircado’s mission to accelerate the transition to a circular economy.”
How will Faircado’s expansion impact the second-hand market?
