Loopster, the online platform for consumers to sell and buy second hand clothing, has secured a six-figure seed equity funding boost to support its expansion plans.
Investing alongside the Development Bank as the led investor, is business angel Jim Lewcock, who owns the internet-focused digital marketing and investment firm, Blue14, and experienced non-executive director and angel investor Kate Methuen-Ley.
The funding will help Loopster to further develop and commercialise its technology, enabling its platform to catalogue second-hand clothes faster.
The Newport-based company will also use the funding to recruit six members of staff, a process that is under way.
Extending the life of one garment through second-hand use by just nine months reduces its carbon and water footprint by 20 to 30%.
To sell to Loopster, customers order the Loopy Clear Out Bag and fill it up with unwanted clothes.
Loopster then hand-checks every donated item to ensure they of good quality.
Parents are paid for items which make the grade which are then sold on at a fraction of new high street prices.
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Clothes which do not pass the hand-check are returned to the seller, or if they agree, donated to the charity Traid.
Following the success of their children’s clothing service Loopster are now scaling up to include womenswear on its platform.
Founder and CEO Jane Fellner said: “People are starting to be more conscious of the importance of sustainable clothing. We’ve already seen a 50% increase in sales this financial year as consumers seek out more environmentally conscious fashion options.
“With the Welsh Government leading the charge to tackle the climate crisis we are thrilled to have the support of the Development Bank of Wales as our lead investor. Their equity finance is helping us grow our team and our platform further. We really hope as we enter the new normal, that one silver-lining will be creating a more sustainable future.”
Technology investment executive Alex Leigh who led the deal on behalf of Development Bank of Wales said: “Loopster has a really scalable hardware-software solution that addresses an important need within the babywear and children’s fashion sector.
"They’re helping clothes have an extra lease of life instead of ending up in landfill, which will have a positive environmental impact. We’re looking forward to working with the team and company as they grow and move in to other fashion retail markets.”
Blue 14 director and investor Jim Lewcock said: “This purposeful start-up is delivering value-innovation for its customers. I’m delighted to be supporting Loopster build a sustainable fashion brand that helps its customers save money and the planet. What’s not to like?”