German startup sewts has raised €7 million to accelerate development of its autonomous robots handling textiles. The Series A financing will boost commercialization of the company's robotic sewts.VELUM system for industrial laundries.

Launched in 2022, sewts.VELUM automatically feeds and folds towels using robotic arms, grippers and 3D cameras, reducing manual labor at human speeds. By increasing throughput and profitability, the system aims to help laundries navigate labor shortages.

The round was led by Emerald Technology Ventures, with new investors CNB Capital, EquityPitcher Ventures and Nabtasco joining. Existing shareholders Bayern Kapital, APEXX Ventures and HTGF also participated.

As Emerald's Michal Natora explained, by freeing human capital through physical AI, sewts is positioned to become a leader in automation. The strong demand for sewts.VELUM validates their niche market approach toward broader textile production goals.

Long-term, sewts envisions revolutionizing apparel manufacturing, including handling returned clothes for e-commerce. A prototype system developed with Germany's Otto Group highlights this future potential.

"Our moonshot idea is automating textile production," said sewts CEO Alexander Bley. "We first tackle promising niche markets, then progressively approach the bigger vision."

By strategically applying AI and robotics to alleviate labor challenges, sewts also unlocks new value streams. Their incremental expansion from laundries to broader textiles demonstrates the power of targeting automation where it's most impactful first.

The fresh funding empowers sewts to scale its physical automation technology across the textile industry. With skilled labor increasingly scarce, sewts' innovations represent the future of intelligent, adaptable manufacturing.