Fleek, a United Kingdom-based startup modernizing the secondhand fashion sector, has raised $25 million in a Series B funding round. The investment was led by Burda Principal Investments, with participation from eBay, FJ Labs, H14, Andreessen Horowitz, HV Capital, and Y Combinator.
The company uses artificial intelligence to automate critical processes in secondhand fashion supply chains, including textile sorting, grading, and merchandising. By connecting wholesale suppliers with retailers globally, Fleek addresses inefficiencies in a market that has experienced significant growth in recent years.
Addressing Market Fragmentation
The secondhand fashion industry operates through fragmented processes that rely heavily on manual labor and inconsistent quality standards. Fleek’s technology standardizes these operations, allowing suppliers and retailers to transact more efficiently at scale. Founder Abhi Arora articulated the company’s mission, stating: “We started Fleek because that system is broken, the market it serves is exploding, and nobody is building the technology and infrastructure to fix it.”
The funding injection will enable Fleek to pursue multiple strategic objectives. The company plans to accelerate development of its AI-native marketplace, expand its engineering team, scale its core technology platform, and strengthen its global network of buyers and suppliers. These initiatives aim to establish Fleek as a foundational infrastructure provider for the secondhand fashion trade.
Strategic Backing
The investor consortium reflects confidence in Fleek’s market opportunity and execution capabilities. Burda Principal Investments, the investment arm of the Burda media and technology group, leads the round, signaling significant backing from an established media conglomerate. The presence of eBay and Andreessen Horowitz underscores validation from both established e-commerce operators and leading venture capital firms focused on transformative technologies.
Founded in 2021, Fleek has rapidly gained traction within the European startup ecosystem. The company’s participation in Y Combinator provided early validation and connections, while subsequent investments from major players have accelerated its trajectory.
European Startup Momentum
Fleek’s funding represents sustained momentum in the European sustainability and fashion technology sectors. As circular economy principles gain prominence among retailers and consumers alike, startups leveraging artificial intelligence to optimize secondhand markets are attracting significant capital. The round demonstrates investor appetite for companies solving operational challenges in rapidly scaling consumer markets.
The company joins a growing cohort of European fashion tech startups addressing sustainability and efficiency through digital innovation. With substantial backing from both European and American investors, Fleek is positioned to influence how secondhand fashion transactions operate at the wholesale level—potentially reshaping supply chain economics across the continent and beyond.