Swedish textile technology innovator Coloreel has raised a further SEK 70 million in a private placement to existing and new shareholders, to support the market expansion and growth of its digital thread colouring on-demand system.

The news follows February’s announcement of SEK 100 million in funding secured by the company, which has also just received a new order for eight thread-dyeing units from Tryckhuset AB, the textile branding company based in Stenungssund, Sweden. Delivery and installation will take place immediately.

“Coloreel’s technology contributes to our efficiency and supports our continued expansion,” said Anders Andreasson, Tryckhuset AB CEO. “In the past, we have sometimes had large scrap in our thread stock and now we will only need one thread spool that colours digitally during production, which creates contrasts, gradients, shadows and a depth that has not been possible before with traditional embroidery technology.

“The result looks like a digital print, but it is embroidery and we do not have to compromise on the choice of colour. If we receive an express delivery, we do not need to send a truck to pick up thread in the right colour, we already have everything in place.”

Commenting on the new funding, Coloreel founder and main owner Joakim Staberg said the company was increasingly receiving new expressions of interest from additional investors.

“We are noticing a sharp increase in activity as more and more markets open up,” he said. “Larger orders such as the one recently announced from Tryckhuset are great proof that we are on the right track in our ambition to modernise the use of embroidery in the textile industry.”

Today’s embroidery market consist of around eight million installed embroidery heads, each of which could be equipped with Coloreel’s technology, with immediate benefits.

Throughout the ongoing pandemic, Coloreel has been able to deliver its ground-breaking technology to eleven countries in Europe, North America and Asia with the help of existing distributors. 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 customers in the USA.

www.coloreel.com