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FARO Secures $6 Million to Drive Affordable Fashion and Tackle Textile Waste Across Africa

South African startup FARO has raised $6 million to drive affordable fashion while combating textile waste across Africa.The funding round was led by JP Zammitt, President of Bloomberg/, with contributions from venture capital firms like Presight Capital and Garage Ventures. Notable individual investors included Mato Perić (MPGI), Leonard Stiegeler (Pulse), Oliver Merkel (Flink), Vikram Chopra (Cars24), Tushar Ahluwalia (Razor Group), and Daniel Funk, Managing Director of Thiel Capital.

The funds will enable Faro to expand its operations and strengthen its efforts in tackling one of the fashion industry’s most urgent sustainability challenges — textile waste.

The company leverages the paradox of excess inventory in developed markets and the environmental impact of secondhand clothing imports in emerging markets, strategically positioning itself within the expanding global resale market.

Founded in 2024, FARO began its journey in 2023 with an experimental pop-up store in South Africa, which generated $100,000 in its first month. Initially, the company projected that it would need seven stores to reach $2 million in annual revenue, using traditional retail benchmarks.

FARO exceeded expectations by achieving $2.3 million in revenue last year with only four stores, surpassing projections by 20x. Operating in urban hubs, mid-market centers, and formal retail spaces, the company has demonstrated its ability to outperform traditional retail forecasts.

FARO currently operates four stores and plans to expand to 1,000 locations over the next decade. Its inventory consists of about 40% reconditioned returns and 60% overstock items, sourced through partnerships with major brands like ASOS, Boohoo, G-Star, Jack & Jones, and Levi’s. These products are sold at discounts of up to 70%, appealing to budget-conscious shoppers.

The recommerce startup’s model focuses on acquiring unsold inventory from suppliers, giving these products a second life and reducing waste. This approach promotes sustainability while ensuring that essential goods remain accessible to consumers.

Looking ahead, FARO plans to achieve fivefold growth this year, as stated by CEO David Torr. The company’s ambitious goal of scaling to 1,000 stores will be driven by developing localized pricing profiles that cater to regional demand and available brands, especially as it expands into other emerging markets.

The startup’s solution promotes a circular economy by prolonging the life of products, offering cost savings for both consumers and suppliers. This approach aligns with the global push for sustainability, particularly in the retail sector, where unsold goods are frequently discarded in landfills.

A key factor in FARO’s success is its technology-driven approach. By leveraging advanced data analytics and inventory management systems, the company accurately predicts consumer demand, optimizes stock levels, and ensures a seamless shopping experience. These tools boost efficiency, enabling FARO to scale operations while maintaining low costs.

Innovation like this is gaining traction in African markets, with startups tackling similar challenges. For example, Nigeria’s PrognoStore has developed a 3-in-1 point-of-sale system that integrates sales, inventory, and analytics for small business owners. This solution streamlines operations, enabling shop owners to make data-driven decisions and boost profitability.

In a similar vein, Côte d’Ivoire’s Waribei is supporting small traders by offering inventory financing solutions. By granting merchants access to stock on credit, Waribei enables them to grow their businesses and increase revenue. These examples highlight how technology is revolutionizing inventory management and enhancing access to goods.

Moreover, FARO’s model demonstrates how integrating technology with sustainable practices can foster positive change. Its influence goes beyond profit, reshaping how businesses approach waste, resource efficiency, and affordability. With this innovative strategy, FARO sets a new standard in the retail sector, offering valuable lessons that could inspire similar initiatives across Africa and beyond.

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Written by Grace Ashiru

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