In 2026, eBay announced the expansion of its Circular Fashion Fund to new regions, including the European Union, Switzerland, and Canada. This move marks a significant step in supporting the transition to circular business models within the textile ecosystem, aligning with EU priorities on sustainability, waste reduction, and resource efficiency.

Originally launched in 2022, the fund aims to accelerate startups and SMEs developing solutions that extend the life of textiles and reduce environmental impact. For the 2026 edition, eight selected businesses will each receive $50,000 in funding, alongside tailored mentoring and industry support. One global winner will be awarded an additional $300,000 investment through eBay Ventures.

The initiative focuses on key circular strategies such as resale, repair, recycling, and circular design, areas that are central to achieving a more sustainable and competitive textile value chain in Europe.

With this expansion, eBay’s total commitment to circular fashion is expected to reach $1.9 million by 2026. Since its launch, the fund has already supported more than 25 businesses, helping to scale innovative solutions and strengthen circular ecosystems across different markets.

By providing both financial support and strategic guidance, the initiative contributes to fostering innovation, enabling new circular business models, and supporting SMEs in meeting upcoming regulatory and market expectations. eBay’s initiative highlights the growing role of private sector investment in accelerating the transition towards a circular textile economy in Europe.