ToysReloved Raises 425,000 Euros to Support the Recycled Toy Program

The Berlin-based circular commerce startup ToysReloved has closed an oversubscribed funding round totaling 425,000 euros. The company had originally aimed to raise 350,000 euros. The fresh capital will primarily be used to further develop the technology platform, professionalize operational processes, and expand sales.

Berlin Angel Fund and Business Angels Invest

Participants in the funding round include the Berlin Angel Fund as well as several entrepreneurs and business angels. Together with existing investors, this is intended to create a network of supporters who will contribute expertise in the areas of e-commerce, technology, brand building, and scaling.

“With this funding, we’re laying the groundwork for our next phase of growth,” explains co-founder Bennet Görlitz. ToysReloved aims to increase its processing capacity and further standardize its operations.

The startup aims to efficiently refurbish significantly larger quantities of used toys and put them back on the market.

Reloved OS is designed to make secondhand toys scalable

The company’s proprietary technology platform, Reloved OS, plays a central role in this. It combines AI-powered product recognition with pricing, inventory management, and distribution across various sales channels.

In the coming months, the system is set to be further automated and scaled to handle larger volumes of merchandise. This is precisely where one of the challenges of the business model lies: While individual high-quality secondhand products are relatively easy to trade, the profitable resale of large quantities of used toys requires efficient processes.

To this end, ToysReloved handles quality control, pricing, and resale, among other tasks.

Circular commerce requires more than just technology

However, the company does not rely exclusively on automation. At the same time, ToysReloved aims to become better known as a consumer brand.

But technology alone is not enough to make used toys the norm.

Sascha Müller, Co-Founder of ToysReloved

Families need to trust the provider both when purchasing and when returning used products. In addition to scaling its technology and operations, the startup therefore aims to expand its reach through partnerships, influencers, and its own community.

A Second Life for Toys

The business model targets a market where a circular economy makes particular sense. Many high-quality toys are used only for a limited time but can then easily be used by other children.

ToysReloved aims to create a professional infrastructure for this purpose and standardize the processes involved in drop-off, inspection, pricing, and resale as much as possible.

The oversubscribed funding round now provides the Berlin-based startup with 425,000 euros for its next phase of growth. The key will be whether ToysReloved can scale its combination of technology, efficient processes, and trust in the brand in such a way that the secondhand toy market evolves from individual resales into a professionally organized circular economy business. In addition, the startup must win over the existing secondhand toy market on classifieds portals and social media sales groups.