Brighton-based clothing resale platform The Little Loop has secured equity investment from The FSE Group’s growth fund in the South East, as well as FSE’s Business Angel Network, as part of a £750,000 funding round.

The Little Loop offers a B2B2C clothing resale solution designed to tackle the growing issue of unwanted clothing for both consumers and retailers. Through its platform, consumers can trade in used garments for a curated selection of quality-checked and cleaned preloved items for resale, or for vouchers from the company’s partner brands.

For brands, The Little Loop integration means they can offer a clothing take-back scheme directly from their own platforms without the additional resource needed to operate it in-house. This supports sustainability targets, generates new revenue streams, and contributes to circular economy goals through the reuse of clothing that might otherwise go to landfill.

The funding will be used to accelerate technology development and make key hires to expand the team. Currently focused on the children’s clothing sector, The Little Loop is now preparing to extend its offering into adult fashion.

Charlotte Morley, Founder and CEO of The Little Loop, said: “We’re delighted to have secured investment from The FSE Group and its Business Angel Network as we move into the next stage of growth. The UK clothing resale market, already worth £7bn and accounting for almost 1 in 4 fashion transactions[1], is forecast to double by 2029. This, together with changing legislation, means that embracing resale is no longer optional for brands. This funding will help us bring our much-needed solution to more customers and we’re thrilled to be working with FSE on our growth journey.”

Jonathan Day, Investment Manager at The FSE Group, commented: “Charlotte and her team bring a wealth of experience from leading retail and e-commerce brands such as Not on the High Street, Gap and ASOS, and have already established impressive relationships with household names including John Lewis and JoJo Maman Bébé.  With growing consumer appetite for pre-loved fashion and increasing pressure on brands to deliver sustainable solutions, The Little Loop is ideally placed to drive growth in this rapidly expanding market. We look forward to supporting Charlotte and her dynamic team as they take the business forward.”

Consumer demand for cost-effective, sustainable clothing solutions continues to rise, with 67% of 18–34-year-olds and 61% of 35–54-year-olds buying or selling pre-loved fashion online last year[2]. The Little Loop’s model provides both environmental and commercial benefits, contributing to a more circular and responsible fashion industry while delivering value and choice to consumers.

[1] https://www.occstrategy.com/en/article/second-hand-fashion-how-first-hand-brands-can-compete-and-thrive/

[2] https://www.evri.com/guides/second-hand-trends