Xefco Scores Nearly $7M in Seed Extension Funding
Xefco has raised just shy of $7 million in its latest funding round.
The Australia-based materials science and technology startup’s 10.5 million Australian dollars (about $6.9 million) round was led by Australian deep tech fund Main Sequence to reduce textile emissions and create a greener supply chain for the industry.
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“The existing wet processes used to put color and other functional properties on fabrics have the biggest environmental footprint of the entire fashion supply chain,” said Tom Hussey, CEO and founder of Xefco. “These outdated, resource-intensive operations have not changed in centuries.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.”
The investment from other, new backers—including Breakthrough Victoria and Virescent Ventures, investing on behalf of the Clean Energy Finance Corporation—and existing shareholders, Investible and Voyagers Climate-Tech Fund, will help grow the team to double its current headcount and scale production of Ausora, Xefco’s patented water-free textile finishing and dyeing solution.
“Xefco addresses an often-overlooked element of the fashion supply chain, one that is critical to global climate repair,” Jun Qu, investment manager at Main Sequence, said. “There’s no sustainable future without sustainable fashion and we see immense potential for Xefco to accelerate the decarbonization of the global textile industry.”
Using its shower plasma process, Ausora can dye and finish textiles without water and yield the same look, feel and performance expected from the incumbent methods. This process can be used on both natural and synthetic materials; Xefco said it has “a number” of pilot projects underway with heavy-hitting sportswear, outdoor and fashion brands using the Ausora system to color and finish their 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. Dyeing and finishing drive the biggest impacts in the textile supply chain,” Hussey said. “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 tons of waste entering our waterways and CO2 from entering our planet.”
Co-founded in 2018 by Hussey and Brian Conolly, Xefco spent the last six years “advancing innovative textile solutions.” Its first product, XReflex, increases the thermal efficiency of insulated clothing and is used by the likes of Zara and The North Face. The sustainable manufacturing company’s technology has been recognized by grants, including up to $4 million from Deakin University’s Recycling and Clean Energy Commercialization Hub, supported by the Australian government’s inaugural Trailblazer Universities Program.
“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,” Grant Dooley, CEO at Breakthrough Victoria, said. “With research and development based in Geelong and 10 regional Victorian manufacturers already collaborating with Xefco on design and manufacturing, BV believes this investment can help establish Victoria as a leader in advanced textile manufacturing systems.”
