Grants and funding, Manufacturing News

Xefco secures $10.5M in funding to create green fashion supply chain

Xefco has raised $10.5 million in a funding round led by fund Main Sequence to help the company reduce textile emissions and create a greener supply chain for the fashion industry.

The fund will help grow the team, as well as commercialise the production of Xefco’s patented water-free textile finishing and dyeing solution, Ausora.

The investment comes from other new backers, Breakthrough Victoria, Virescent Ventures, investing on behalf of the Clean Energy Finance Corporation (CEFC) and existing shareholders, the Investible and Voyagers Climate-Tech Fund. 

CEO at Breakthrough Victoria, Grant Dooley, said Xefco has the potential to move major fashion brands towards eco-friendly manufacturing processes. 

“We believe Xefco has the potential to move major global fashion brands towards more eco-friendly and efficient manufacturing processes that are safer for workers, water-free, eliminate water pollution and reduce carbon emissions,” said Dooley. 

The textile industry is one of the world’s biggest polluters with textile finishing and dyeing responsible for a fifth of global industrial water pollution and 3% of global carbon emissions. 

It’s also the second largest industrial user of water after agriculture.

CEO and founder of Xefco, Tom Hussey, said the company is determined to create a greener supply chain for the fashion industry. 

“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. These outdated, resource-intensive operations have not changed in centuries.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,” said Hussey

With its latest innovation, Ausora, Xefco has discovered a way of dyeing and finishing textiles using a shower plasma process which produces the same performance without the environmental footprint.

Based at Deakin University’s ManuFutures hub at the Waurn Ponds campus, Xefco’s impactful technology has been recognised by grants including up to $4 million from Deakin’s Recycling and Clean Energy Commercialisation Hub. 

The technology is also supported by the Australian Government’s inaugural Trailblazer Universities Program. 

This builds on funding Xefco received as a key partner in the ARC Research Hub for Future Fibres at Deakin’s co-located Institute for Frontier Materials.

Investment manager at Main Sequence Jun Qu said Xefco’s work is so important as without sustainable fashion, there’s no sustainable future. 

“Xefco addresses an often-overlooked element of the fashion supply chain, one that is critical to global climate repair. There’s no sustainable future without sustainable fashion and we see immense potential for Xefco to accelerate the decarbonisation of the global textile industry.”

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