Thread colouring specialist Coloreel has raised nearly £6 million by issuing new shares to support its expansion and move into new areas of textile decoration.
It carried out a private placement of shares to both existing and new shareholders, valued at 70 million Swedish kroner. It followed February’s investment of £8.6 million (100 million kroner) from private equity outfit Robur Ny Teknik.
Announcing the fund-raising, Coloreel revealed only that it wanted to use the money to support its growth plans and to expand its high-tech colouring applications into sewing.
Based in Sweden, Coloreel offers innovative technology for embroidery that enables high-quality digital dyeing of textile thread on demand.
Joakim Staberg, the company’s founder and main owner, 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.”
Recent orders, such as eight units delivered to Swedish embroidery manufacturer Tryckhuset, have also highlighted how Coloreel’s technology can help decorators reduce waste and be more sustainable.
Mattias Nordin, CEO of Coloreel, said: “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.”