Meet two recommerce fintechs focused on sustainable fashion

  • The Twig and Responsible recommerce fintechs have raised a combined $ 41.6 million to fund the growth of the company.
  • Twig and Responsible help users resell their items more seamlessly for instant cash, especially luxury items which tend to retain more value over time.
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The news: Two British Isles-based recommerce fintechs wowed investors with arguments that promoted their circularity and sustainability. Both started out in fashion and couldn’t have chosen a better time to get started: fast fashion is out; sustainable fashion is in fashion.

Graph showing which sustainability initiatives UK adults want more stores to offer them

Insider Information

British fintech Twig has secured $ 35 million from a Series A funding round to support future growth, by AltFi.

The Belfast-based startup Responsible has secured $ 6.6 million in seed funding led by Barclays’ Sustainable Impact Capital program, according to Finextra.

What are they doing? The recommerce movement encourages consumers to buy second-hand items and to shop in a more sustainable way to prevent items from entering landfills.

But these recommerce fintechs don’t just recycle or upcycle – as TechCrunch puts it, they are also “reinventing a bank’s function as arbiter and exchange of resale value.”

Twig’s app allows users to sell and trade digital and physical items, like clothing or electronics, on its platform.

Payments can be made in cash and in the future in digital assets such as cryptocurrencies and non-fungible tokens (NFTs). The platform will support Bitcoin and Ethereum cryptocurrencies. Payments can then be applied to future purchases.

And Responsible has developed an integrated financing platform, Buy Back, which can be integrated with a fashion brand’s e-commerce site or with physical stores.

Technology is integrated at the point of purchase to inform consumers of the residual value of the items they purchase.

Consumers can return the item at any time in exchange for a store credit.

Here’s how they work: Fintechs are using blockchain and integrated finance to attract Gen Z and millennials, who have shown a keen interest in both the economy and the sustainability of second-hand markets.

Like the digital pawnshop Diem, the Twig app comes with an emoney account (Twig’s is provided by PayrNet) and a Visa debit card.

It uses the Hyperledger Sawtooth blockchain to deliver resale value from users’ unwanted items.

Users can sell these items to Twig for instant cash – and eventually, for cryptocurrencies and NFTs – and Twig resells them for a profit.

Twig Founder and CEO Geri Cupi told TechCrunch that although Twig is currently a B2C platform, “it is going to become a B2B2C platform. It will therefore be connected as a payment gateway from different vendors.” . Cupi said Twig has already signed deals with undisclosed retailers to connect to their infrastructure.

Responsible’s BuyBack plugin, on the other hand, is integrated into an ecommerce site as an API or into a store via scanning.

As an integrated financing offering, the goal of fintech and the site is to make consumer transactions more transparent and create a deeper affinity with the brand.

BuyBack is available within the Shopify e-commerce platform, and Responsible said the funding round will help it grow in Europe and expand its partnerships with other brands.

Why they might be successful: Both fintechs aim to meet consumer demand to participate in the circular economy. Sixty-two percent of global consumers believe it is very important that the companies they buy from adopt circular practices, which highlights the demand for environmentally friendly solutions. The challenge is that reselling junk items can take longer than throwing them away.

Why it’s worth watching: Twig and Responsible help users resell their items more seamlessly for instant cash, especially luxury items which tend to retain more value over time. But the two fintechs are also expanding the definition of wealth beyond real estate and cars to include other things that consumers can convert into alternative stores of value.

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