AI Sorting Tech Secures Pre-Seed Funding from H&M
reverse.fashion’s automated sorting system utilizes image recognition and RFID technology to efficiently process discarded textiles. © reverse.fashion
Berlin-based reverse.fashion has closed its first pre-seed financing round, marking a significant step toward transforming how the fashion industry handles used clothing. According to the company's LinkedIn announcement, the round was led by Kisora, with H&M Group joining as an investor.
The startup is developing AI-powered sorting technology that tackles one of circular fashion's biggest bottlenecks: efficiently processing mountains of discarded textiles. Their system combines computer vision, RFID technology, and optional near-infrared spectroscopy to automatically identify and categorize garments as they move along a conveyor belt.
Here's how it works: As clothing items pass through, cameras scan each piece while AI algorithms analyze multiple characteristics—fabric type, brand, condition, and more. The technology can even access Digital Product Passport data once regulations require manufacturers to embed such information. This transforms what has traditionally been a manual, subjective process into an automated, data-driven operation.
"This support accelerates our roadmap to bring automated textile sorting for reuse to market—reducing sorting costs, improving capture of high-value garments, and enabling curated feedstock for specific customer groups," said Co-Founder Mario Osterwalder in the announcement.
The technology emerged from research collaborations between circular.fashion and Technische Universität Berlin. It addresses a critical need as secondhand fashion markets and recommerce platforms grow rapidly. Textile sorters struggle to keep pace with increasing volumes while maintaining quality standards that these businesses demand.
Laura Coppen, Investment Manager for Sustainable Fashion at H&M Group Ventures, emphasized the technology's potential to "unlock high-quality second-hand assortments" and help scale circular infrastructure for larger volumes.
By improving sorting accuracy and speed, reverse.fashion aims to help sorters reduce costs, capture more valuable items, and supply cleaner material streams for reuse, repair, upcycling, and recycling operations.
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