Xefco secures $10.5 million to pioneer water-free textile dyeing

Sustainable manufacturing startup Xefco has raised $10.5 million in seed extension funding. The round was led by the CSIRO’s deep tech investment fund, Main Sequence, and saw participation from Breakthrough Victoria, Virescent Ventures, Investible and Voyagers Climate-Tech Fund.

The textile industry, notorious for its substantial pollution and resource usage, finds itself the second largest industrial user of water after agriculture and a significant contributor to industrial water pollution and carbon emissions.

Founded in 2018 by Tom Hussey and Brian Conolly, Xefco aims to develop innovative solutions to reduce the environmental impact of textile production.

“Dyeing and finishing makes up around 36% of the carbon footprint of the supply chain, which is around 3% of global emissions. It also consumes a huge amount of water, which leads to significant wastewater, a significant wastewater issue that makes up around 20% of industrial water pollution globally,” Hussey said to SmartCompany.

“Our technology eliminates water pollution from the process and also reduces energy by around 90%.”

Xefco’s new funding will primarily fuel the growth of its team and the commercial production of Ausora – its patented water-free textile finishing and dyeing solution.

“Our systems are designed as a standalone drop in solution that allows manufacturers to divert productions away from conventional processes,” Hussey said.

“Most importantly, we can simplify the production process by eliminating several steps used in conventional methods. So a single source machine can replace up to 10 machines required for conventional processes.”

Ausora utilises a novel “shower plasma” process that allows textiles to be dyed and finished without using water, aiming to deliver similar quality and performance while significantly reducing the environmental footprint.

“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,” Hussey said.

“We’re determined to create a greener supply chain for the fashion industry.”

Ausora is designed to integrate seamlessly into existing supply chains, allowing for an easier transition to more sustainable manufacturing processes.

“We are aiming to provide the tools the industry needs to transition to sustainable manufacturing,” Hussey said.

In addition to the latest investment, Xefco’s technology has garnered recognition and support from significant grants, including up to $4 million from Deakin University’s Recycling and Clean Energy Commercialisation Hub, supported by the Australian government’s Trailblazer Universities Program.

There’s no sustainable future without sustainable fashion, and we see immense potential for Xefco to accelerate the decarbonisation of the global textile industry,” Jun Qu, investment manager at Main Sequence, said.