In a statement, the company said the problem it had been trying to fix was the fact that textile finishing and dyeing was responsible for a fifth of global industrial water pollution and 3% of global carbon emissions.

Xefco said it had negated the need for water in textile dyeing and finishing through its innovative, patented textile solution Ausora – which delivered the same look, feel and performance qualities without any pressure on the environment.

The company said its technology was easily plugged into existing infrastructure for lower cost production, while consuming 100% less water and 80% less energy.

The funding round was led by Australian deep tech fund Main Sequence, with new backers being Breakthrough Victoria, Virescent Ventures, investing on behalf of the Clean Energy Finance Corporation, and existing shareholders, Investible and Voyagers Climate-Tech Fund.

Xefco said this would help to recruit double its staff and also commercialise production of Ausora.

“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," said Tom Hussey, chief executive and co-founder.

"These outdated, resource-intensive operations have not changed in centuries.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."

Xefco was founded in 2018 by Tom Hussey and Brian Conolly and has spent the last six years advancing innovative textile solutions.

The company's first product XReflex, which increases the thermal efficiency of insulated clothing, is already used by some of the world’s leading apparel and fashion brands, including Zara and The North Face.

Ausora uses a shower plasma process and produces the same look, feel and performance properties without the environmental footprint. Its process can be used on any textiles, including natural and synthetic materials.

Xefco said it already had a number of pilot projects underway with some of the largest sportswear, outdoor and fashion brands using Ausora to colour and finish apparel.

Said Hussey: "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. 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."

Xefco is located at Deakin University’s ManuFutures hub in the Waurn Ponds campus. The company's technology has been recognised by grants, including up to $4 million from Deakin’s Recycling and Clean Energy Commercialisation Hub, supported by the Australian Government’s inaugural Trailblazer Universities Program.

Xefco has also received funds for being a key partner in the ARC Research Hub for Future Fibres at Deakin’s co-located Institute for Frontier Materials and previously from the Innovative Manufacturing CRC. Xefco also took part in Cicada Innovation's Tech23 event last year.

Jun Qu, investment manager at Main Sequence, commented: “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.”