Swedish technology company, Coloreel, has raised SEK 100 million from Robur Ny Teknik to support the company’s market expansion and future growth
The investment is worth approximately £8.6 million.
Henrik Nyblom, manager at Robur Ny Teknik, said: “Coloreel has a very innovative solution that I think can be very big in the future. The company’s products speak to an increasingly environmentally conscious world and have fantastic sales opportunities in the coming years.”
For just over 10 years, Coloreel has developed a pioneering technology that enables high-quality digital dyeing of textile thread at the same time as it is used in production. The well-patented technology can be used for embroidery, sewing, knitting and weaving, and more.
This product gives embroidery manufacturers a number of advantages such as improved logistics, zero set-up time when changing thread spools between each order, faster production, higher embroidery quality, no thread waste and above all a complete freedom in the use of colours. Customers get exactly the right colours, soft transitions and colour effects where only the imagination sets limits. The technology also provides major environmental benefits with greatly reduced water pollution and more efficient use of resources. This means great competitive advantages for all types of embroidery manufacturers.
The interest from the market has since the launch been very large, from smaller to the very largest brands in everything from lifestyle and sports to exclusive fashion. Coloreel has initially chosen to enter into closer collaboration with some of the world’s most famous brands.
The industrial embroidery market is very large and growing continuously. Approximately 750,000 new embroidery heads are sold annually and seven to eight million embroidery heads are currently in operation globally. Each of these heads can be equipped with a Color unit. Even with moderate market shares, this means billions in sales with very good margins.
Despite the ongoing pandemic, Coloreel, with the help of existing distributors, has delivered its groundbreaking products to 11 countries in Europe, the United States and Asia, albeit in limited volumes.
Joakim Staberg, founder and main owner of Coloreel, added: “It is very fun that Robur Ny Teknik, one of Sweden’s leading institutional investors in technology companies, wants to join us on the journey. It is further proof that we are on the right track.”
Coloreel is distributed in the UK by AJS Embroidery Services.