Smartex, a Portuguese tech startup co-founded by Gilberto Loureiro, uses AI to cut waste in textile production.

Its cameras and visual software spot fabric defects early, helping factories reduce material loss.

The fashion industry produces massive waste, with a truckload of clothes discarded every second, according to the Ellen MacArthur Foundation.

Smartex claims it saved over 1 million kilograms of fabric in three years and boosted production efficiency.

Despite its US$1.8 trillion size, the fashion industry lags in digital adoption due to complex supply chains.

Smartex has attracted major investors like H&M Group and Lightspeed Venture Partners, raising US$40 million.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Fashion’s waste crisis has reached staggering proportions despite decades of awareness

The textile waste problem that Smartex aims to address has grown dramatically over time, with U.S. textile waste increasing by 811% since 1960 according to industry research 1.

This waste epidemic continues despite growing awareness, with approximately 80 billion new clothing items purchased annually worldwide and about 85% eventually ending up in landfills 2.

The industry’s environmental impact extends beyond waste, with fashion production causing approximately 20% of global water pollution from textile dyeing and finishing processes, as mentioned in the original article and confirmed by environmental research.

Most fashion brands struggle with fundamental supply chain visibility questions that Loureiro aims to solve, explaining why technological solutions have been slow to develop despite the massive scale of the problem.

The $1.8 trillion fashion industry represents one of the largest remaining sectors that hasn’t fully embraced digital transformation, explaining why investors see significant potential in companies bringing technology to this space.

2️⃣ Manufacturing’s technology resistance stems from ROI obsession

Loureiro’s experience with the “30-second pitch” on ROI reflects a documented pattern in manufacturing, where factory owners typically demand clear evidence of financial returns before adopting new technologies 3.