^{Source: Stewart Townsend}

The Rising Need for Sustainability in Fashion: Smartex Steps Up

The fashion industry has long been notorious for its waste problem, with approximately a truckload of clothes discarded every second, either buried or burned, as reported by the Ellen MacArthur Foundation. Smartex, a startup revolutionizing textile production, is determined to tackle this issue head-on using cutting-edge technology. Backed by high-profile investors like Amazon Web Services (AWS), H&M Group, and iPod inventor Tony Fadell, Smartex is on a mission to reduce waste and increase efficiency in the textile manufacturing process.

The Genesis of Smartex: From Factory Floor to Tech Innovation

Gilberto Loureiro, the co-founder of Smartex, has firsthand experience in the textile industry. As a teenager in Portugal, Loureiro spent summers working in a textile factory, where he observed the challenges and inefficiencies of the production process. The task of identifying flaws in fabric as it passed through machines at a rate of 15 to 20 meters per minute was not only labor-intensive but also led to significant material waste.

"I loved the textile industry and problem-solving, but the inspection work and the inefficiencies were frustrating," Loureiro recalls. These formative experiences led him to pursue a master’s degree in physics and co-found Smartex, a company that now uses AI, cameras, and advanced vision software to detect fabric defects during production.

Tackling Fashion's Waste Crisis: The Smartex Solution

Smarts' technology has already made a significant impact, preventing over 1 million kilograms of fabric waste in just three years. Their defect-spotting software identifies flaws during the manufacturing process, allowing companies to salvage more material and produce higher-quality garments. In a sector where sustainability is crucial, Smartex’s innovation is a game-changer.

The fashion industry, despite its size and global influence, is yet to fully embrace digital transformation. From raw material processing to garment production, the fashion supply chain is fragmented and complex. However, Smartex has successfully bridged the gap, making the fashion industry more efficient while reducing its environmental footprint.

Impact on the Global Fashion Industry

According to the Ellen MacArthur Foundation, the global textile industry is responsible for about 20% of global water pollution, largely from dyeing and finishing processes. Smartex's innovation addresses these issues by ensuring fewer defects in textiles, which means that less water, energy, and raw materials are wasted.

The company’s defect-detection technology allows for a 0.37% increase in garments produced per kilogram of fabric. While this may sound modest, when you consider that fashion giant Inditex (the parent company of Zara) used a staggering 678,596 tonnes of raw materials in 2024, this increase could result in significant reductions in material waste on a global scale.

Smartex's High-Profile Investors

Smartex’s cutting-edge approach has attracted significant attention and investment from some of the world’s biggest names in tech and fashion. In 2022, H&M Group invested in the company, marking a key partnership in the effort to drive sustainability in fashion. The same year, Tony Fadell, the inventor of the iPod, led a $24.7 million investment round with Lightspeed Venture Partners.

To date, Smartex has raised over $40 million in funding, positioning the company for rapid expansion and further technological development. In addition, Amazon Web Services (AWS) recognized Smartex’s potential and included it in the AWS Compute for Climate Fellowship program, a prestigious initiative that supports climate tech startups.

Smartex’s Global Reach and Promising Future

Smartex has expanded its operations across multiple countries, focusing on textile manufacturing hubs in Asia, including Bangladesh and Vietnam. Factory owners in these regions are eager to understand the return on investment (ROI) that Smartex’s technology can offer. According to Loureiro, most factory owners make their purchasing decisions based on a quick, clear ROI calculation.

Typically, factory owners invest several hundred thousand dollars into Smartex’s technology, and the average payback period for an investment is between 9 to 18 months. As factories realize significant savings in materials, yarn, and electricity, the investment quickly pays off.

The Road Ahead: Smartex’s Vision for the Future

Loureiro envisions Smartex becoming the “operating system” for textile factories across the entire fashion supply chain. The company’s ultimate goal is to help brands track every aspect of the production process, from raw material sourcing to water usage and garment progress. Currently, these are questions that many fashion brands struggle to answer, but Smartex is changing that.

Fadell, a key investor, compares Smartex’s potential to that of Apple’s software ecosystem, emphasizing that it’s not just about the hardware or individual products, but about how everything comes together to create an invaluable system.

The Bigger Picture: Why Sustainability in Fashion Matters

The fashion industry is forecast to exceed $1.8 trillion by 2025, making it one of the largest industries in the world. Yet, it remains one of the most polluting sectors, with waste and inefficient practices harming the environment. Smartex’s innovative technology is providing a much-needed solution to this problem.

In addition to its environmental benefits, the company’s growth prospects remain strong, with more major players recognizing the potential for AI and technology to enhance efficiency and reduce waste. As more brands and manufacturers embrace sustainable practices, Smartex is well-positioned to lead the charge in creating a cleaner, more sustainable fashion industry.

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The fashion industry’s waste crisis is real, but Smartex offers a promising solution. By using AI and cameras to detect fabric flaws during production, the company is preventing millions of kilograms of waste and making fashion production more efficient. With the backing of top investors like H&M and Amazon, Smartex is poised to lead the way in creating a more sustainable and tech-driven fashion industry.

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