Fashion-tech startup unspun announced today that it has raised $32 million in a Series B funding round, with proceeds aimed at scaling its technology to reduce waste and carbon emissions in the fashion sector.

The fashion industry is facing increasing pressure to address the climate impact of its climate and environmental impact, as one of the top industrial sources of greenhouse gas (GHG) emissions, water pollution and landfill waste. The European Commission, for example, has proposed rules aimed at supporting the sustainable management of textile waste, and placing responsibility for the full lifecycle of textile products in the hands of producers, noting that only 22% of post-consumer textile waste is collected for re-use or recycling, with the remainder often landfilled or incinerated, and that consumption of textiles has the fourth highest impact on climate change and the environment.

Founded in 2015, California-based unspun, provides 3D weaving technology eliminating waste and emissions and enabling circular production for the fashion sector, while lowering production costs. The company’s technology, Vega, weaves thousands of yarns into garments in minutes, which unspun said allows for  almost zero-waste, on-demand, local manufacturing. According to unspun, the technology allows traditional cut-make-trim facilities to make clothing four times faster, with 53% emissions reduction, 49% reduced energy demand and a 39% reduction in blue water consumption. It also said its process is more efficient, with less than 3% waste of cut fabric compared to the industry average of 15%.

The funding round was led by deep tech investor DCVC, with participation from investors including Lowercarbon Capital, E12, Decathlon and SOSV.

Walden Lam, CEO of unspun said:

“Overproduction has long been a taboo in fashion. It is now recognized by top-tier climate-funds as a key issue to urgently solve for the industry. We are overwhelmed with the enthusiasm, and excited to be partnering with DCVC, Lowercarbon, SOSV climate, Decathlon and many commercial partners to urgently scale Vega to localize apparel manufacturing across North America and Europe.”

The company said it has signed multi-year agreements with retailers like Walmart to deploy its Vega machines for localized production in both North America and Europe. Unspun said Vega will also have circular supply chain applications, and the company is developing products and manufacturing techniques that allow for garments to be unspun back into yarns, and re-woven into new products.

According to unspun, the new capital will enable the company to build more Vega 3D weaving machines, helping the company to scale the technology as it expands its operations in North America and Europe.

Milo Werner, General Partner at DCVC, who will join unspun’s Board of Directors, said:

“unspun offers a tremendous economic and logistical unlock for the fashion industry by eliminating costly overproduction and radically shortening the supply chain. We think it’s good business to align profits and climate impact and are excited to help unspun revolutionize the way clothing is made.”