Coloreel secures funding to support expansion and growth
Coloreel has raised SEK 70 million (approximately £5.86 million) in a private placement to existing and new shareholders.
The funding will be used to support the company’s market expansion and growth and to initiate expansion into new application areas such as sewing.
Joakim Staberg, owner and founder, said: “In this private placement, we bring in a number of exciting and strong investors alongside the existing major shareholders, Robur Ny Teknik, SEB Stiftelsen, Svea Ekonomi and Ilija Batljan, who also participated in this placement. In parallel to this, we now receive more and more new expressions of interest from additional investors which feels very exciting.”
Mattias Nordin, CEO, added: “We are noticing a sharp increase in activity as more and more markets open up. Larger orders such as the one recently announced from Tryckhuset AB is great proof that we are on the right track in our ambition to modernise the use of embroidery in the textile industry.”
Coloreel’s technology for digital dyeing of textile thread on-demand gives embroidery manufacturers and fashion designers a number of significant competitive advantages. The technology maximises the users’ creative potential while minimising the environmental impact. Higher embroidery quality, no thread waste, no wastewater, creative colour changes and above all a complete freedom in the use of colours.
The interest from the market is great, from the smallest to the very largest brands in everything from lifestyle and sports to exclusive fashion apparel. Coloreel has chosen to initially enter into close collaborations with some of the world’s most famous brands and leading embroidery manufacturers.
The embroidery market is large and includes about eight million installed embroidery heads worldwide. Each of these embroidery heads can be equipped with Coloreel’s technology. Despite the ongoing pandemic, Coloreel, with the help of existing distributors, has delivered its ground-breaking technology to 11 countries in Europe, the United States and Asia, albeit in limited volumes. It has also started business with the world’s largest distributor of embroidery machines, US based Hirsch Solutions, which has already installed the technology with several reputable end-customers in the US.