Fleek Raises $25 Million to Transform Secondhand Clothing Through AI

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The global resale economy is expanding rapidly as consumers increasingly embrace secondhand fashion for both economic and environmental reasons. While demand for pre owned clothing continues to rise, much of the supply chain behind the industry remains highly fragmented and dependent on manual processes. Sorting, grading, pricing, and merchandising millions of garments still require significant human effort, creating inefficiencies that limit scalability and reduce the value recovered from secondhand inventory. UK startup Fleek is working to modernise this ecosystem through artificial intelligence and digital infrastructure, and the company has now secured fresh funding to accelerate the next stage of its global expansion.

Fleek has raised $25 million in a Series B funding round led by Burda Principal Investments, with participation from eBay, FJ Labs, H14, and existing investors including Andreessen Horowitz, HV Capital, and Y Combinator.

The new capital will support product innovation, engineering growth, expansion of the company’s AI platform, and continued international marketplace development.

Modernising the Secondhand Supply Chain

Founded in 2021 by Abhi Arora and Sanket Agarwal, Fleek operates a business to business marketplace that connects wholesale secondhand clothing suppliers with retailers, boutiques, and resellers around the world.

The platform was created to address inefficiencies within a global resale supply chain that has traditionally relied on manual inspection, grading, and trading.

By digitising these workflows, Fleek enables suppliers to process inventory more efficiently while providing buyers with faster access to high quality secondhand products.

The company aims to make global sourcing of resale inventory more transparent, scalable, and data driven.

AI at the Core of Inventory Processing

Artificial intelligence plays a central role throughout Fleek’s platform.

Its proprietary system, known as Fleek Sort, analyses garment images and videos to automatically identify, categorise, and grade clothing before products are listed for sale.

Automating these tasks reduces manual work while creating standardised digital inventory records that can be searched and managed more efficiently.

The company continues to improve the platform by training its AI models using marketplace activity and inventory data generated across its growing global network.

This continuous learning process strengthens inventory classification and improves operational efficiency over time.

Smarter Marketplace Technology

Beyond automated sorting, Fleek applies artificial intelligence across several marketplace functions.

AI powered pricing tools help determine competitive product values, while intelligent search and recommendation systems connect buyers with relevant inventory more effectively.

Matching algorithms also improve supplier and retailer connections by recommending products based on purchasing behaviour, inventory characteristics, and demand patterns.

Together, these technologies enable a more efficient digital marketplace where buyers can source products faster and suppliers can recover greater value from their stock.

Expanding a Global Resale Network

According to the company, Fleek’s marketplace currently connects more than 2,000 wholesale suppliers and grading partners with over 50,000 retailers, resellers, and boutiques operating across more than 100 countries.

The platform has helped keep more than 12 million clothing items in active circulation, supporting the broader transition towards a more circular fashion economy.

By extending the life of garments while improving supply chain efficiency, Fleek aims to reduce waste and create greater commercial opportunities throughout the resale ecosystem.

Accelerating Future Growth

The newly secured funding will be used to further develop Fleek’s AI native marketplace while expanding its engineering organisation and technology capabilities.

The company also plans to enhance artificial intelligence across inventory processing, merchandising, marketplace operations, and buyer discovery as it continues growing internationally.

As resale continues becoming an increasingly important part of the global fashion industry, digital infrastructure capable of automating complex supply chain processes is becoming essential. By combining artificial intelligence with a global business marketplace, Fleek aims to modernise secondhand commerce while helping suppliers, retailers, and consumers participate more efficiently in the growing circular economy.

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