Mercari Invests In Fake Busters AI-Powered Authentication

Liz Morton
Liz Morton


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Online marketplace Mercari is investing in Tokyo-based startup behind Fake Busters AI-powered authenticity detection service for branded goods in $5.8 million US funding round.

Fake Busters raises $5.6M to strengthen AI-powered authenticity check for branded goods
Tokyo-based IVA, the Japanese startup behind the Fake Busters AI-powered authenticity detection service for branded goods, announced on Wednesday that it has secured about 800 million yen (about $5…

Tokyo-based IVA, the Japanese startup behind the Fake Busters AI-powered authenticity detection service for branded goods, announced on Wednesday that it has secured about 800 million yen (about $5.8 million US) in the latest round.

The amount includes loans from Mizuho Bank and Resona Bank. This is the first funding for the five-year-old startup. Participating investors are Mercari (TSE:4385), De Capital family office, and four angel investors – Shogo Kawada (co-founder of DeNA), Yuzuru Honda (founder of Freakout Holdings), Eiko Matsumura, and Yusuke Masuda.

Fake Busters offers product authenticity services by combining a team of experienced appraisers with diverse backgrounds, state-of-the-art specialized equipment, and AI-powered authenticity detection technology.

The company is capable of appraising 88 brands in the fields of sneakers, luxury goods, apparel, and accessories, which have large secondary distribution demand. The company has appraised a total of 1.5 million items to date, and offers appraisal services tailored to customer needs, such as quick appraisals based on images as well as complete appraisals based on actual items.

The company uses the funds to plans to further enhance its AI capability, which currently has a 99.9% authenticity rate, to speed up the process, and to add an express option that will provide results in 60-90 minutes, previously within 48 hours. The company will expand applying the AI-based authenticity detection into further product categories such as luxury brand bags, jewelry, and trading cards.

FAKEBUSTERS|Sneaker and Apparel Authentication Site
FAKEBUSTERS is the one stop authentication service for all Nike, Yeezy, and Supreme apparel. The authentication services go through state-of-the-art methods, tools, and data base with the application of the resources by our authentication associates. Our mission is to eradicate the on-going issue in…

Like many online marketplaces, Mercari has jumped fully on the current AI bandwagon, introducing a ChatGPT powered shopping assistant earlier this year and creating a dedicated AI team at the company to develop both internal and external use cases for this new technology.

Mercari Jumps On ChatGPT Bandwagon With AI Shopping Assistant
Mercari marketplace gets into the latest tech craze with ChatGPT powered AI shopping assistant.

With Fake Busters focus on sneakers and apparel as well as plans to expand their AI-based authentication to luxury handbags, trading cards and jewelry, it's clear Mercari sees this investment as an important step in going toe to toe with eBay in these desirable luxury enthusiast categories.

eBay is developing and deploying their own AI-powered authentication technology through their recent acquisition of Certilogo as well as physical authentication either in-house or through 3rd party partners for sneakers, streetwear, handbags, jewelry, watches and trading cards.

eBay Acquires Certilogo For AI Fashion Authentication
eBay agrees to acquire Certilogo, an AI-powered technology for digital ID & authentication of fashion brands.

As Mercari looks to take market share from eBay in these important categories, they'll need to work to add trust in the authenticity of items offered for sale on their platform.

It will not be surprising if further investment and/or a strategic partnership or acquisition of Fake Busters may be on the horizon.

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Liz Morton is a 17 year ecommerce pro turned indie investigative journalist providing ad-free deep dives on eBay, Amazon, Etsy & more, championing sellers & advocating for corporate accountability.


Recent Comments
Avatar PlaceholderMksowa14 hours ago
They need to fix a very broken system full of nasty attitudes. The patrons no longer matter.
Avatar PlaceholderMarty_JYesterday
Was just checking to see if it would post without creating an account but….
eBay seller since 2022
Just started selling about a year and half ago

800 items sold 99.7 feedback

Recently I went away for family things for 30 days set my acct to be away … got back with items not received cases opened

I wasn’t able to revise existing listings post new listings OR refund the buyer from my eBay funds …

The items were caught up in recent wild fires but ended up being delivered late. I had to beg the buyer to let me pay them off of eBay to close the case because it was on hold and I wasn’t able to refund them from my eBay acct etc…. So luckily they obliged and I did … but ever since then my acct must be strikes as high risk because funds have been on hold 3 days after delivery since then indefinitely might I add… I get the run around everytime etc etc FINALLY I got someone saying it’s temporary it’ll be back to normal etc. these r all reps from escalated departments… one lady told me that with my history and feedback I’ve proved beyond doubt that I’m reliable seller and shouldn’t be on hold she put in for a appeal never heard back got the run around for another few months… they keep telling me I’ve been chosen for the new update they r rolling out total BS … do you believe that sellers will stay on eBay with these holds ? No they will simply go to another platform … they r 100% making money on the holds and use any reasoning to tell you basically no and keep profiting…. The get around is creating a new acct… these cases were closed without eBay having to step in and might I add I lost $$ and its been truly frustrating esp since I’ve built the acct up but I know I can do it again.. when they tell me its going to happen to all accts I just mention how my brother just opened one n now has immediate payments they don’t know what to say I don’t think they really even know.,, its sad n scummy but I see a class action lawsuit coming honestly ! I don’t know💬 if I forgot anything but well written thanks for the information. Have a great one!
Avatar PlaceholderJkvinyl3Yesterday
As many have already quoted - us sellers now can not charge for packaging. I will be £500 a year out of pocket.