The investment will allow Coloreel to scale its technology that eliminates the need for pre-coloured threads, thereby leading to positive environmental effects within the textile industry by minimising thread waste, use of chemicals and wastewater.

All known embroidery machines on the market today rely on individual pre-coloured reels of thread for each colour used in the embroidery process, the firm explains. Its patented technology addresses this issue by using a single recycled polyester thread as input, thereby eliminating the need for pre-coloured threads, which are a significant cause of wastewater pollution. Coloreel’s on-demand solution will also reduce the amount of wasted thread in the embroidery process.

Coloreel says its innovation was driven by the significant environmental impact of the textile industry and the challenges posed by traditional methods of handling threads, which require many hundreds of thread reels to be stocked while still not ensuring the right colours are available to complete subsequent production orders. Based in Jönköping, southern Sweden, Coloreel is primarily looking to grow in global markets.

“The Nefco financing will go a long way in supporting our international expansion. It is also a strong acknowledgement of the sustainability benefits we can offer the textile industry,” says Torbjörn Bäck, CEO, Coloreel.

Fredrik Larsson, investment adviser at Nefco, adds: “Coloreel has the potential to make embroidery and clothing production far more sustainable than it is today and enable a major step towards circularity in the textile industry.”

Last September, Coloreel introduced a recycled polyester thread used with a technology enabling high-quality colouring of textile thread on demand.

The sustainable move by Coloreel was made in collaboration with thread manufacturing giant Madeira, as it looks to reduce its impact even further.

In line with Coloreel’s mission to provide more sustainable and creative embroidery methods, Coloreel will shift over to offer 100% recycled polyester thread to be used with the instant thread colouring technology for embroideries. This will provide customers the ability to create more sustainable embroideries with thousands of colours, CMYK, RGB/HEX and PMS compatible.