Sustainable manufacturing technology company, Xefco has raised $10.5 million in its latest funding round led by Australian deep tech fund, Main Sequence, to reduce textile emissions and create a greener supply chain for the fashion industry. 

The investment from other new backers, Breakthrough Victoria, Virescent Ventures, investing on behalf of the Clean Energy Finance Corporation (CEFC) and existing shareholders, Investible and Voyagers Climate-Tech Fund, will help grow the team and commercialise production of Xefco’s patented water-free textile finishing and dyeing solution, Ausora. 

Textile finishing and dyeing is responsible for one fifth of global industrial water pollution and 3% of global carbon emissions. It’s also the second largest industrial user of water after agriculture.

“The existing wet processes used to put colour and other functional properties on fabrics have the biggest environmental footprint of the entire fashion supply chain,” Xefco CEO and founder, Tom Hussey said.

“These outdated, resource-intensive operations have not changed in centuries. It’s destroying our waterways and our planet. We’re determined to create a greener supply chain for the fashion industry.”

Co-founded in 2018 by Tom Hussey and Brian Conolly, Xefco has spent the past six years advancing innovative textile solutions. Its first product, XReflex, which increases the thermal efficiency of insulated clothing, is already used by leading apparel and fashion brands including Zara and The North Face.

With its latest innovation, Ausora, Xefco discovered a way of dyeing and finishing textiles without water. Using its unique shower plasma process, Ausora produces the same look, feel and performance properties without the environmental footprint. 

Ausora’s process can be used on any textiles including natural and synthetic materials. Xefco already has pilot projects underway with sportswear, outdoor and fashion brands using its Ausora system to colour and finish apparel. 

“Our Ausora systems have been designed to plug and play into existing supply chains to help brands and manufacturers easily transition to a cleaner textile process,” Hussey said.

“Dyeing and finishing drive the biggest impacts in the textile supply chain. Whereas, compared to conventional wet dyeing and finishing, our process eliminates the use of water and cuts energy, chemical consumption and cost. Our technology has the potential to stop millions of tonnes of waste entering our waterways and CO2 from entering our planet.”

With its latest capital injection, Xefco plans to nearly double its headcount in 2024 and scale its manufacturing process.