Faro Receives $6M Seed Investment to Expand Recommerce Operations
Deal News | Jan 28, 2025 | Aim Group
Faro, a Cape Town-based recommerce startup founded in 2023, has secured a $6 million seed funding round. The investment was led by Bloomberg president JP Zammitt, as reported by TechCrunch. Faro specializes in collecting mainly consumer returns of textile articles with minor defects from global brands, restoring them, and reselling them through its offline stores. Currently, 40% of its stock is reconditioned while 60% consists of overstock items. The company cites logistics and delivery cost challenges in the African region as reasons for its offline focus. Employing innovative technologies, Faro aims to remove inefficiencies in inventory management by using AI for microtask performance and other automation technologies. With revenue multiplying twentyfold to $2.3 million in 2024, Faro is aiming for fivefold growth within the year and targets establishing 1,000 stores across Africa, South America, Asia, and the Middle East. Other participants in the funding round include Presight Capital, Gharage Ventures, E4E Africa, and individual investors like Vikram Chopra of Cars24. Faro has not yet confirmed plans for expanding to online channels.
Sectors
- Recommerce
- Retail Technology
Geography
- South Africa – Faro is based in Cape Town, South Africa, and primarily operates in the African region.
- Global Expansion – Faro plans to expand its operations to Africa, South America, Asia, and the Middle East.
Industry
- Recommerce – Faro operates within the recommerce industry, focusing on the resale of returned and overstock textile goods.
- Retail Technology – Faro uses technology such as AI to manage inventory and improve operational efficiencies.
Financials
- $6,000,000 – The total seed funding amount received by Faro.
- $2,300,000 – Faro's revenue in 2024 after a 20x growth.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Faro | Target company | Company | Recommerce startup focusing on reselling returned and defective textile goods. |
| JP Zammitt | Lead Investor | Person | President of Bloomberg and lead investor in Faro's seed funding round. |
| Presight Capital | Investor | Company | A venture capital firm participating in Faro's funding round. |
| Gharage Ventures | Investor | Company | Venture capital firm engaged in Faro's investment. |
| E4E Africa | Investor | Company | Investment firm involved in the funding round for Faro. |
| Vikram Chopra | Investor | Person | Individual investor and part of the investment team for Faro. |
| David Torr | Co-Founder and Co-CEO | Person | Co-founder and co-CEO of Faro, advocating for customer centricity in the company's expansion strategy. |