Funded project - Revolutionising the entire lifecycle of clothing from purchase to disposal

Last updated: 10 September 2025
Share
Project lead: A.BCH
Project partners: Melbourne Textile Knitters (MTK), Full Circle Fibres and The Social Studio
Status: Completed
Funding source: Circular Economy Innovation Fund
Funding amount: $85,000
Co-contribution: $111,122

Circular Sourcing is a digital B2C/B2B marketplace platform developed to connect Victorian businesses with surplus textile materials. The initiative addresses the pre-consumer textile waste crisis by creating an innovative infrastructure to redistribute high-quality surplus materials, turning potential waste into profit.

Manufacturing Retail Textiles Wholesale trade

Background

The project developed a digital platform, Circular Sourcing, to tackle the silent crisis of unused pre-consumer textiles across Australia. There is over 10 million kilograms of high-quality surplus textiles hidden away in warehouses, destined to be wasted or devalued. This issue also carries significant economic implications; failing to unlock the value of these materials deprived businesses of potential revenue streams. The untapped potential of high-quality resources for reuse could both increase economic growth while decreasing environmental impact simply by utilising what was already there.

Despite the expressed interest of numerous businesses and individuals in acquiring and utilising these surplus materials, there was a lack of accessible platforms or systems that hampered their discovery and accessibility. The platform's primary goal was to connect businesses of all sizes with surplus materials through an innovative B2C/B2B marketplace. The project provided businesses with an avenue to sell their excess materials to individuals and organisations seeking to utilise them.

As the lead applicant and project manager, Courtney Holm of A.BCH demonstrated a strong understanding of the consumer base driving the demand for sustainable textiles. A.BCH was a pioneering brand in the circular fashion sector, dedicated to revolutionising the entire lifecycle of clothing from purchase to disposal. Holm is recognised in the industry for actively collaborating across sectors, engaging with businesses of varying sizes and individuals. This collaboration was demonstrated effectively with the project partners from Full Circle Fibres, MTK and The Social Studio, as well as consultation from The Business Pickle / Harvey, who all worked together to build Circular Sourcing. The collaborative group comprised key stakeholders representing various stages of the textile value chain, including farm-to-fabric sourcing, textile technology, local manufacturing, textile milling, and CMT factories. With expertise in supply chain management, raw materials and textile development, consumer products, marketing, and project management, the project team was well equipped to drive the project forward.

By showcasing sustainable innovation and fostering collaboration, the platform established a scalable model and continues to facilitate textile reuse.

Stages

12/07/2022 Establishment of working group and reporting schedule with collaborative stakeholders.
31/08/2022 Completion of research engagement and concept design, including data collection and analysis.
30/11/2022 Development of digital platform prototype and initial user feedback. Creation of creative materials and user guide.
25/07/2023 Technical development and feedback implementation. Development of version 1 pilot platform.
27/10/2023 Official launch of pilot platform and marketing plan execution.

Outcomes - what worked?

Within just 12 weeks of launch, the platform demonstrated impressive results:

  • Over 5 tonnes of textiles listed for recirculation
  • 250kg of textiles successfully sold
  • 12 active sellers engaged and selling
  • 35 additional sellers in various stages of onboarding

The project exceeded its initial targets, projecting 22 tonnes of waste reduction within 12 months, compared to the original target of 10 tonnes per annum. This success has led to the development of a robust business and funding plan for the next phase.

Challenges

Technical Development Delays

The platform development exceeded initial timeframes, requiring careful management of feedback processes and communication with collaborators to maintain project momentum.

Project Partner Withdrawal

Early project challenges included the loss of a key partner, requiring the team to adapt and fill specialised role gaps while managing committed cash and in-kind contribution shortfalls.

Economic Pressures

Economic downturn created cash flow challenges for the small business partners, though effective communication and lead partner investment helped overcome these obstacles.

Insights to share with other businesses

Comprehensive planning and strong project management proved essential for success. The team emphasises the importance of connecting with other circular economy businesses and networks, leveraging collective knowledge and experience. The circular economy community offers valuable wisdom and support for innovative projects.

What's next?

Following a successful 2023 pilot, Circular Sourcing was incubated by A.BCH World for 12 months, focusing on extended market testing and validating a sustainable business model. In mid-2024, the initiative secured 12 months of funding from the Country Road Climate Fund to develop impact measurement tools for carbon, water, and waste, alongside an industry-facing Sourcing Guide. In 2025, Circular Sourcing was incorporated as an independent company and selected for the prestigious Startmate Accelerator Program, which supports high-potential technology startups. The business is now positioning for growth across the APAC region, enabling fashion, clothing, and textile companies to source and sell surplus textiles at scale. Circular Sourcing is preparing to raise Seed funding by mid-2025 to expand its technology and operational capacity beyond the region. In its next phase, the company aims to create three full-time roles and divert more than 230 tonnes of textiles into high-value reuse, while building a scalable, sustainable venture.

From the Grantee

"Support for this project has not only made Circular Sourcing possible but it has had an almost immediate and tangible impact on the industry by directly addressing a significant challenge within the system. Building infrastructure for new systems to be designed, tested, and launched is essential for the realisation of a circular economy."
Courtney Holm, Director at A.BCH