Softwear Automation Raises $20 Million In Series B1 Funding Round

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SoftWear Automation, Inc. is an Atlanta, Georgia-based robotics and automation company founded in 2012. It specializes in developing advanced robotics, machine vision, and AI/ML technologies to disrupt the $1.1 trillion global apparel and textile industry. The company’s flagship product is the SEWBOT® platform, a patented fully automated sewing system that enables on-demand, localized manufacturing of garments like T-shirts. This technology addresses key challenges in the industry, such as labor shortages, supply chain inefficiencies, and sustainability issues, by allowing precise handling of flexible fabrics with real-time adjustments for distortion—similar to how autonomous vehicles navigate roads. SoftWear Automation’s innovations stem from over a decade of R&D, initially supported by collaborations with Georgia Tech and early funding from entities like DARPA and the Walmart Foundation. The mission is to create scalable, sustainable solutions that reduce inventory, minimize waste, and enable competitive pricing through localized production.

Historical Funding Overview

Prior to the latest round, SoftWear Automation had raised approximately $25.6 million across three funding rounds, focusing on early-stage development and scaling of its SEWBOT technology. The following table summarizes the known historical rounds:

These earlier rounds helped the company transition from R&D to commercial deployment, with a focus on proving the viability of autonomous sewing in apparel manufacturing. The total funding prior to 2025 stood at $25.6 million, bringing the cumulative amount to $45.6 million after the latest infusion.

Details of the Latest Funding Round

SoftWear Automation announced the close of its latest funding round, raising $20 million in a Series B1 extension. This round was led by BESTSELLER, a major Danish fashion conglomerate (owner of brands like Jack & Jones, Vero Moda, and Only), through its investment arm Invest FWD. Participating investors included existing backers CTW Venture Partners (an Atlanta-based VC firm focused on tech and manufacturing), SRI Capital (a seed and early-stage investor in deep tech), and MacDonald Ventures (a firm supporting innovative hardware and software solutions).

• Amount and Stage: $20 million in Series B1, which appears to be an extension of the prior Series B rounds to accelerate growth without advancing to a full Series C.
• Investors:
  Lead: BESTSELLER (via Invest FWD).
  Others: CTW Venture Partners, SRI Capital, MacDonald Ventures.
• Strategic Elements: The investment includes a board seat for Thomas Børglum Jensen, CFO of BESTSELLER, signaling a deep strategic partnership. This collaboration aims to integrate SoftWear’s technology into BESTSELLER’s supply chain for faster, more sustainable garment production.
• Purpose of Funds: The capital will be used to expand operations, enhance development efforts, and scale the SEWBOT platform for broader adoption in apparel manufacturing. Specifically, it supports advancing the company’s mission to create localized, on-demand production models that are sustainable and efficient. This includes potential investments in AI/ML improvements, manufacturing capacity, and market expansion.

The announcement emphasizes the round as a “major milestone” in revolutionizing sewn goods production.

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Analysis of the Funding Round

• Valuation and Terms

While exact valuation figures were not disclosed, the $20 million raise in a Series B1 round suggests a post-money valuation likely in the range of $100-200 million, based on typical multiples for deep-tech robotics firms in the manufacturing sector (e.g., 5-10x revenue or funding raised). The participation of strategic investor BESTSELLER implies confidence in the technology’s commercial potential. Terms such as equity dilution or liquidation preferences were not revealed, but the board addition indicates investor influence on strategic decisions.

• Strategic Implications

This funding round is particularly noteworthy for its strategic alignment with BESTSELLER, a global fashion leader facing industry pressures like rising labor costs in traditional manufacturing hubs (e.g., Asia) and demands for sustainability amid environmental regulations. By partnering with SoftWear, BESTSELLER can potentially reshore production to closer markets (e.g., Europe or the US), reducing carbon footprints and lead times while addressing ethical labor concerns. SoftWear’s SEWBOT technology could enable “micro-factories” for on-demand apparel, aligning with trends in fast fashion toward customization and zero-waste models. For SoftWear, this partnership provides not just capital but also access to BESTSELLER’s vast supply chain and customer base, accelerating go-to-market strategies.

Compared to previous rounds, this infusion is the largest single raise for the company, nearly matching the 2021 $18.1 million Series B. It reflects growing investor interest in automation amid post-pandemic supply chain disruptions and labor shortages in the textile sector. The involvement of repeat investors like CTW, SRI, and MacDonald Ventures underscores continuity and belief in the team’s execution.

• Industry Impact

The apparel industry, valued at over $1.5 trillion, has long relied on manual labor, making it vulnerable to geopolitical shifts, wage inflation, and ethical scrutiny. SoftWear’s autonomous sewing tech could automate up to 80% of sewing processes, potentially creating jobs in higher-skilled areas like robotics maintenance while displacing low-wage roles—a politically sensitive topic in developing economies. However, the emphasis on sustainability (e.g., reduced waste and localized production) positions it favorably amid ESG (Environmental, Social, Governance) investing trends. Competitors like Sewbo or Grabit offer similar fabric-handling tech, but SoftWear’s DARPA-backed origins and AI integration give it an edge in scalability.

This round could catalyze broader adoption, especially if BESTSELLER pilots SEWBOT in its operations, setting a precedent for other brands (e.g., H&M, Zara). Potential risks include technical challenges in handling diverse fabrics beyond T-shirts and high upfront costs for deployment, but the funding mitigates these by fueling R&D.

With this capital, SoftWear Automation is poised for significant growth, potentially expanding SEWBOT applications to other garments (e.g., jeans, activewear) and entering new markets like home textiles or automotive interiors. Milestones to watch include commercial deployments with BESTSELLER, revenue growth announcements, or a Series C round in 2026-2027. Overall, this funding strengthens SoftWear’s position as a leader in apparel automation, contributing to a more resilient and eco-friendly global supply chain. If successful, it could help shift manufacturing paradigms, though success hinges on overcoming adoption barriers in a traditionally conservative industry.

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