FARO, a South African startup revolutionizing the fashion industry, has secured $6 million in funding to address textile waste and make fashion more affordable across Africa.

JP Zammitt, President of Bloomberg, led the investment round, with additional backing from venture capital firms such as 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 scale operations and further its mission of combating the environmental damage caused by fashion industry waste.

By leveraging unsold inventory from developed markets and reconditioning returns, FARO is carving a niche in the global resale market while addressing the sustainability challenges posed by secondhand clothing imports in emerging markets.

Founded in 2024 following a successful pop-up experiment in 2023, FARO quickly established itself as a market leader.
Its debut pop-up store in South Africa generated $100,000 in its first month.

Surpassing initial projections, the startup achieved $2.3 million in revenue last year with just four stores, a remarkable feat that reflects its innovative approach and market demand.

Currently operating in urban hubs, mid-market centers, and formal retail spaces, FARO plans to expand to 1,000 locations within the next decade.

The company’s inventory consists of 40% reconditioned returns and 60% overstock items, sourced from prominent brands like ASOS, Boohoo, G-Star, Jack & Jones, and Levi’s.

The startup employs advanced data analytics and inventory management systems to predict consumer demand, optimize stock levels, and enhance the shopping experience.

This technology-driven approach ensures operational efficiency, enabling FARO to scale while maintaining competitive pricing.

The startup’s business model aligns with the principles of a circular economy, extending product lifecycles and reducing environmental impact.

The funding aims to enhance the continent’s tourism industry through cutting-edge technology, marking a significant milestone for sustainable and inclusive travel.

The funding round attracted prominent investors, including Clear Creek Investment B.V., Klister Corp., and Fede Pirzo-Biroli of Playfair Capital.

This investment highlights growing confidence in PEV’s mission to tackle key challenges in the tourism industry through its portfolio of startups and upcoming ventures.

“This funding is a testament to the untapped potential in African tourism innovation. With this support, we’re poised to revolutionize the industry through groundbreaking travel technology in Africa, fostering economic growth while preserving the continent’s incredible natural and cultural heritage,” said Ben Peterson, PEV’s Co-Founder and CEO.

PEV’s ambitions align with Kenya’s efforts to bolster its digital ecosystem.
Initiatives like expanding fiber optic connectivity and the introduction of a digital nomad visa underscore the government’s commitment to fostering a tech-enabled environment.

These measures aim to attract remote workers and global travelers, strengthening the synergy between technology and tourism.

Kenya has also made strides in digitizing government processes to improve efficiency and transparency.

In September 2024, the government launched the Foreign Travel Management Information System (FOTIMS), an automated platform for senior government officials to approve foreign travel, replacing outdated manual systems.

PEV’s focus on sustainability is central to its approach, addressing immediate industry needs while ensuring long-term environmental and cultural preservation.

Its innovations prioritize efficiency, inclusivity, and resilience—qualities that are especially vital in a post-pandemic landscape.