The funding will also be used to support the company’s 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,” said Coloreel founder and main owner Joakim Staberg.

“In parallel to this, we now receive more and more new expressions of interest from additional investors which feels very exciting.”

Coloreel CEO Mattias Nordin 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, is great proof that we are on the right track in our ambition to modernise the use of embroidery in the textile industry.”

Coloreel said its technology offers users higher embroidery quality, no thread waste, no wastewater, creative colour changes, and complete freedom in the use of colours.

With the help of existing distributors, Coloreel said it has delivered its technology to 11 countries in Europe, the US, and Asia, albeit in limited volumes to date.

The business has also recently taken on a new vice president of sales, Sven Öquist, who was previously responsible for driving sales expansion at Swedish car manufacturer Polestar.

“We have already come a long way, but the time is now right to increase our efforts as our goal is to reach a billion SEK in turnover within five years. Sven Öquist is perfect for the role of vice president of sales with his previous experience of driving up sales volumes and developing sales organisations both in Sweden and internationally.”

Öquist added: “Coloreel’s product will fundamentally change the industry. My job now will be to build on, strengthen and develop the sales organisation with the goal of scaling up the company.

“The product has a unique patent foundation that gives me the opportunity to do this in the right way. To be able to participate and work with such an innovation, which has an enormous ‘tech height’ and development potential, is extremely motivating for me. The fact that it also provides significant sustainability benefits makes me extra proud to take on my new role.”