Coloreel secures funding cycle and sees textile market activity increase – WWD
Coloreel, the supplier of digital dyeing and on-demand textile yarns, said it received a 70 million Swedish kronor (or roughly $ 8 million) funding round from existing and new investors “to support the ‘expansion and growth of the company’s market and to initiate expansion into new applications. areas such as sewing.
The company also said that as businesses open up more fully after the COVID-19 outbreak, activity in the textile and embroidery market is on the rise.
Joakim Staberg, founder and majority owner of the company, said with this private placement: “We are attracting 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. At the same time, we are now getting more and more new expressions of interest from additional investors, which is very exciting. “
Mattias Nordin, CEO of Coloreel, said the company “is seeing a sharp increase in activity as more and more markets open up. Larger orders such as the one recently announced by Tryckhuset AB are great proof. that we are on the right track in our ambition to modernize the use of embroidery in the textile industry.
Last month, Coloreel said Swedish embroidery maker Tryckhuset AB is investing in new technology from the company to meet growing product demand. Tryckhuset purchased eight Coloreel units.
Terms of the contract are not disclosed. Anders Andreasson, CEO and President of Tryckhuset, said Coloreel’s technology “contributes to our efficiency and supports our continued expansion. In the past, we have occasionally had large scrap in our yarn stock. Now all we need is a spool of thread that digitally colors during production, creating contrasts, gradients, shadows and depth that was not previously possible with traditional embroidery technology.
Andreasson said the results look like a digital print, “but it’s embroidery and we don’t have to compromise on the choice of color. If we receive express delivery, we don’t need to send a truck to pick up yarn in the correct color, we already have everything in place.
In today’s roundtable statement, Coloreel said its digital on-demand textile yarn dyeing technology “gives embroidery manufacturers and fashion designers a number of important competitive advantages. The technology maximizes the creative potential of users while minimizing the environmental impact. Superior embroidery quality, no waste of thread, no waste water, creative color changes and above all complete freedom in the use of colors.
The company also said market demand for its technology is high – from small niche brands to large clothing companies. But Coloreel is selective and said it “has chosen to first enter into close collaboration with some of the world’s most famous brands and major embroidery manufacturers”.
“The embroidery market is large and includes around 8 million embroidery heads installed worldwide,” Coloreel said. “Each of these embroidery heads can be equipped with Coloreel technology. Despite the ongoing pandemic, Coloreel, with the help of existing distributors, has delivered its breakthrough technology to 11 countries in Europe, the United States and Asia, albeit in limited volumes. “
Coloreel said he had also started a business “with the world’s largest distributor of embroidery machines, the US company Hirsch Solutions, which has already installed the technology with several reputable end customers in the United States.”