Zerow Secures €1M to Scale Circular Fashion Technology Across Europe
Startup Wise Guys portfolio company Zerow has secured approximately €1 million in private investment and public funding to expand its circular fashion platform, develop new technology and accelerate international growth.
The fashion industry has a costly problem: valuable materials that never make it into finished products.
Luxury fabrics, leather and other manufacturing materials can sit unused in warehouses, despite retaining significant value. For years, managing this surplus has been a challenge for fashion brands and manufacturers.
Zerow is building a business around solving it.
Founded in Florence in 2021, the Startup Wise Guys portfolio company connects fashion houses, manufacturers and designers through a B2B platform that helps unused materials find their way back into production.
Zerow joined our 2024 accelerator program in Bilbao as part of the Sustainability vertical, and we first covered its funding journey in 2025.
Now, Zerow has secured approximately €1 million in combined private and public financing to take that model further.
New capital for the next stage of growth
The financing includes a €400,000 bridge round backed by Italian and international business angels and investment funds, alongside funding from Smart&Start Italia, managed by Invitalia, and additional support from the Tuscany Region.
The investment comes as European regulation is changing how fashion companies manage unsold products and materials.
Under the EU’s Ecodesign for Sustainable Products Regulation (ESPR), new restrictions on the destruction of unsold textile products are being introduced. For luxury brands, this creates a growing need for better inventory management, material traceability and circular solutions.
Zerow plans to address that need by developing proprietary software modules that help brands manage surplus inventory and support regulatory compliance.
The new funding will also help the company expand its team and accelerate commercial growth across Europe and the United States.
The numbers behind Zerow’s growth
Zerow’s progress shows that circular fashion is becoming more than a sustainability ambition.
In the first half of 2026, the company recorded 206% year-on-year revenue growth.
Its network now includes:
- 4,000 buyers, with half based outside Italy
- 1,000+ circular economy partners
- €500,000 in revenue in 2025
- €1.5 million in projected revenue for 2026
By connecting unused materials with businesses that can put them back to work, Zerow is demonstrating the commercial potential of a more circular fashion supply chain.
As Co-founder and CEO Gabriele Rorandelli puts it:
“This milestone confirms that the transition towards circular models in the fashion industry is no longer an optional choice, but a concrete industrial necessity.”
He adds that luxury brands increasingly need operational tools to manage unsold inventory and certify material flows, positioning Zerow as a technology and strategic partner in that transition.
Building the infrastructure for circular fashion
For Startup Wise Guys, Zerow’s latest milestone is particularly encouraging because it reflects the progress of a portfolio company addressing a tangible industry challenge with technology and a scalable business model. It is exactly the kind of company our Sustainability Accelerator Program is built to back.
What began as a way to give valuable unused materials a second life is evolving into a technology platform helping fashion companies manage inventory, meet regulatory requirements and build more circular supply chains.
With new financing, growing international demand and a changing European regulatory environment, Zerow is entering an important new stage.
