As fashion waste hits record highs, one startup is turning repairs into retail’s smartest upgrade. The fashion industry stands at a critical juncture where sustainability meets profitability, and Alternew is emerging as a transformative force. Founded by industry veteran Nancy Rhodes, this New York-based startup is accelerating the circular transition by making alterations and repairs seamlessly integrated into the retail experience.
Bridging the Gap Between Sustainability and Profitability
Alternew’s mission addresses one of fashion’s most urgent challenges: the vast waste generated when Americans collectively discard millions of tons of textiles each year. Alternew’s innovative approach turns what was once a cost center into a strategic advantage for brands, keeping quality garments out of landfills.
Fashion’s circularity depends on closing the care and repair gap, and solutions like Alternew are helping to bridge this divide. By empowering brands, specialists, and partners to elevate care and repair services while leveraging the operational power of technology and a national network, Alternew is making it easier for the industry to embrace more sustainable practices.
The platform connects brands with vetted local tailors and repair specialists, providing a scalable, centralized solution that modernizes a traditionally fragmented fashion care industry. In startup speak, Sterling said, “We’re OpenTable’s restaurant software but for fashion care and repair.”
Tackling the $38 Billion Returns Problem
Alternew’s business case is compelling, especially given that improper fit leads to an estimated $38 billion in annual apparel returns. With the average U.S. apparel return rate at 24.4%, the sector urgently needs solutions.
“Our mission at Alternew is to revolutionize the fashion care and repair industry as an integral part of the circular economy. To start, we’re building a vertical SaaS platform tailored to the unique business needs of fashion care specialists—tailors, cobblers, jewelers, watch repairers, and more—while collaborating with major brands to enhance post-purchase services for customers,” Rachel Sterling, Co-Founder and CTO, said.
Investment and Industry Recognition
Alternew’s innovative model has attracted significant attention. In January 2025, Ankh Impact Ventures invested in Alternew, recognizing its potential to unlock after-sales car. Ankh Impact Ventures announced.
“Brands today spend billions on customer acquisition and retention, yet the after-sales journey remains largely untapped,” Pierre N. Rolin from Ankh Impact Ventures said. “Alternew enables brands to integrate care and repair services, fostering deeper customer connections and building circular, profitable business models.”
Alternew is currently raising a $2 million pre-seed round, with venture, angel, and institutional investors expected to participate. The company was also shortlisted for the eBay x Council of Fashion Designers of America (CFDA) Circular Fashion Fund.
Creating Value Across the Fashion Ecosystem
Alternew’s platform brings value to every stakeholder. For brands, the service boosts loyalty, champions circularity, and creates new revenue streams. Companies with or without internal tailoring teams can benefit from Alternew’s network.
Customers who use alteration services are often more likely to return to a brand, reflecting increased loyalty and satisfaction. For tailors and repair specialists, Alternew unlocks new revenue streams and provides modern tools to optimize operations. The platform aims to elevate often-overlooked trades, helping skilled specialists in tailoring and repair gain greater recognition and opportunity within the fashion industry.
Technology-Driven Insights and Scalability
At the core of Alternew’s system is its ability to generate predictive insights, helping brands understand customers and tailor engagement strategies. The team combines expertise in design, engineering, analytics, and tailoring, led by Nancy Rhodes, who brings over 20 years of experience with top brands and retailers.
The Future of Fashion Care
As the industry faces pressure to adopt sustainable practices, Alternew offers a solution that aligns environmental responsibility with business profitability. With the circular fashion market projected to reach 23% of global fashion by 2030, Alternew is poised to benefit from this shift.
