Investment Memo
Complete detailed breakdown with investment highlights
Company Overview
Company Name
Xefco
Founded
2018
Tagline
Advanced materials for a sustainable future
Mission
Delivering a sustainable future for textiles through advanced manufacturing technologies
The Founders
Tom Hussey — Co-founder & CEO
Based at Deakin University, Institute of Frontier Materials
Brian Conolly — Co-founder
30+ years combined experience in technical textiles
Track Record: Proven track record having developed and commercialized textile technologies used by some of the world's leading brands.
The Problem — Textile Industry Pollution
The textile industry is one of the world's biggest polluters with staggering environmental impact:
79T
Litres of water consumed annually
2nd largest after agriculture
20%
Global industrial water pollution
From dyeing & finishing
25%
All chemicals globally
Used in textile production
8%
Global carbon emissions
More than flights + shipping
Supply Chain Impact Breakdown
Dyeing & Finishing = 36% — THE BIGGEST CULPRIT
Wet Dyeing and Finishing processes are responsible for 20% of global water pollution and 3% of global carbon emissions.
Market Opportunity
$1.9T
Total Global Textile Market
$305B
Global Dyeing & Finishing Market
113M
Tonnes (~600B Metres) Annually
Industry Demand for Solutions
Major apparel groups have committed to aggressive sustainability targets:
Leading Brands
Net Zero by 2040
Premium Brands
50-53% reduction
Scope 3 Targets
30% minimum
The industry desperately needs new technologies to solve its dirty problem.
The Solution — Ausora Technology
Technology Foundation
Xefco developed breakthrough technology bringing semiconductor manufacturing techniques to textiles:
Plasma Enhanced Chemical Vapour Deposition (PECVD)
- • Commonly used in semiconductors, touch panels, advanced electronics
- • Water-free process with major functional and sustainable benefits
The Innovation
Atmospheric Pressure "Shower Plasma"
- • Developed with Deakin University
- • Eliminates expensive vacuum chambers
- • Enables PECVD at low cost and high efficiency
- • Unlocks plasma coatings for textiles at commercial scale
Ausora Finish™
Water-free finishing technology
Ausora Colour™
Water-free dyeing technology
Environmental Benefits — The Numbers
INPUTS SAVED
OUTPUTS ELIMINATED
Operational Efficiency Improvements
Resources required to achieve 20m/min throughput (5 Tonnes/day):
Conventional Wet Dyeing
Slow, inefficient batch processes — Major supply chain bottleneck
Ausora Plasma System
Fast & efficient continuous process — Rapid on-demand production
Efficiency Improvement
85%
Factory Space Reduction
78%
Staff Reduction
91%
Equipment Reduction
Business Model — Embedded Manufacturing
How It Works
- 1
Xefco-owned machines are embedded in customer factories
- 2
Service fee paid per use of Ausora system (charged per metre of fabric processed)
- 3
Customers provide PFD (Prepared For Dyeing) Fabric
- 4
Ausora system produces Finished Fabric
- 5
Product flows to Garment Factory then to Retail & Distribution
Recurring Revenue
Per-metre usage fees create predictable, recurring revenue streams
Capital Efficiency
Equipment remains Xefco-owned, reducing customer CapEx barrier
Scalability
Scalable across multiple customer sites
High Switching Costs
Sticky business model once embedded
Intellectual Property & Progress
Patent Portfolio
24
Patents filed across 8 patent families
Covering: System design, Processes, Coatings, End applications
Development Timeline
Current Customer Commitments
12
Ausora Systems Now Committed
AU$12.75M ARR
Total Committed Annual Recurring Revenue
Customer 1: Footwear Fabric Manufacturer
- • Manufacturer of footwear fabrics to world-leading sportswear brands
- • Establishing new 'green-field' site in Vietnam
- • Providing sustainable dyeing solution to its customers
Agreement: MOU executed
2 segments → AU$2.75M ARR
Customer 2: Major Apparel Manufacturer
- • Major apparel manufacturer supplying to fast fashion industry
- • Seeking improved production efficiency from on-demand dyeing
Agreement: MOU executed
10 segments → AU$10M ARR
Commercial Pipeline
75+
Brand & Manufacturer leads
9B+
Metres annual production in pipeline
300K
Potential Ausora System Segments
Market Penetration Potential
With 113 Million Tonnes (approximately 600 Billion Metres) of global textile production annually, Xefco has enormous scaling potential. The $305 Billion USD dyeing and finishing market represents the total addressable market.
Company Locations
Australia — Head Office
Xefco Pty Ltd
National Innovation Center
4 Cornwallis St
Eveleigh, NSW 2015
Australia — Pilot Plant
Xefco Pty Ltd
Deakin Manufactures
75 Pigdons Road
Waurn Ponds, VIC 3216
Taiwan — Branch Office
HX Innovation Ltd
No. 16, Ln. 50, Wufu 1st Road
Luzhu District, Taoyuan City 338
Taiwan (R.O.C.)
Investment Highlights
Why Xefco Represents a Strong Investment Opportunity
Massive Market Problem
Textile industry is 2nd largest water consumer globally and responsible for 20% of industrial water pollution
Proven Technology
Adapted from semiconductor industry (PECVD) with novel atmospheric pressure approach developed with Deakin University
Compelling Unit Economics
100% water savings, 90% energy savings, 97% chemical savings, 85% space reduction
Strong IP Protection
24 patents across 8 patent families
Validated Commercial Demand
12 systems committed, AU$12.75M ARR from first two customers, 75+ additional leads
Recurring Revenue Model
Service-fee-per-metre creates predictable, recurring revenue streams
Market Timing
Major apparel brands committed to 30-53% emission reductions by 2030 and Net Zero by 2040
Scalability
Embedded manufacturing model allows rapid deployment without heavy customer capital requirements
Experienced Team
Founders have 30+ years combined experience and proven track record commercializing textile technologies
Global Reach
Already established operations in Australia and Taiwan, positioned for Asian textile manufacturing hub