Coloreel, with its patented technology for digital dyeing of textile thread on-demand, has raised $8.14 million in a private placement to existing and new shareholders.
The funding will be used to support the Swedish company’s market expansion and growth and to initiate expansion into new application areas such as sewing.
“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,” Coloreel founder and main owner Joakim Staberg said. “In parallel to this, we now receive more and more new expressions of interest from additional investors.”
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 maximizes the users’ creative potential, while minimizing the environmental impact–higher embroidery quality, no thread waste, no wastewater, creative color changes and freedom in the use of colors, the company noted.
“We are noticing a sharp increase in activity, as more and more markets open up,” Mattias Nordin, CEO of Coloreel, said. “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 modernize the use of embroidery in the textile industry.”
The interest ranges from lifestyle and sports to fashion apparel. Coloreel has chosen to initially enter into close collaborations with some of the top brands and leading embroidery manufacturers. The embroidery market includes about 8 million installed embroidery heads worldwide. Each of these embroidery heads can be equipped with Coloreel’s technology, the company said.
Despite the ongoing pandemic, Coloreel, with the help of existing distributors, said it has delivered its ground-breaking technology to 11 countries in Europe, the United States and Asia. It has also started business with the world’s largest distributor of embroidery machines, U.S,-based Hirsch Solutions, which has already installed the technology with several end-customers in the U.S.