From water-intensive cotton production to mountains of discarded fabric, the environmental toll is immense. But in Porto, a new generation of innovators is challenging this status quo. Smartex.ai has emerged as a company proving that sustainability and profitability can, in fact, go hand in hand.

Recently, Forbes Portugal dedicated an article to Smartex, highlighting its pivotal role in reshaping the industry. And with good reason. When a company from Porto becomes a theme for Forbes, it is impossible not to reflect on its journey and impact, and to add another voice to the conversation about how technology can drive positive changes in such a traditional sector.

At the core of Smartex’s innovation is a deceptively simple idea: if you can catch fabric defects as they happen, you can prevent massive amounts of waste before it ever leaves the loom. High-performance cameras are installed directly on textile machines, feeding real-time data into artificial intelligence algorithms. Defects are detected and corrected instantly, saving raw materials, energy, and labor. In an industry notorious for inefficiency, this shift is nothing short of revolutionary.

The company’s journey began humbly in a shared university flat in Porto. Early experiments were inspired by long hours spent inside textile factories, where manually checking fabric rolls for defects was both tedious and prone to human error. By 2016, the first prototypes emerged, and just two years later, the company was officially founded. Since then, growth has been relentless.

Smartex has secured more than €40 million in funding, expanded to 10 countries and with a strong presence in Asia, the heart of global textile production. And forged partnerships with major international fashion and retail groups. The message is clear: leading industry players see both the environmental and financial value of this technology.

The company has also gone beyond defect detection. With its Smartex Loop platform, it brings digital traceability to textile supply chains, offering brands and consumers transparent information about sourcing and sustainability. In an era when trust and accountability are paramount, this is becoming a powerful differentiator.

Financially, Smartex operates on a “Software-as-a-Service” model, already generating around €3 million annually and aiming to double turnover each year. With only 0.1% of the global textile market currently within its reach, the potential for growth is staggering.

Smartex’s story is not only about innovation, but also about vision. The company is proving that technology can align profitability with environmental responsibility, challenging an industry that has long accepted waste as a cost of doing business.

And so, when a homegrown company from Porto makes it into the pages of Forbes Portugal, it is more than just recognition. It is a reminder that the future of textiles can be rewoven smarter, cleaner, and more sustainable.

Disclaimer: This article has been written with the assistance of AI.