Nordic Knots was founded in 2016 by the trio Liza Laserow Berglund, Fabian Berglund and Felix Berglund. Their business idea is mainly based on selling handmade rugs in the premium segment directly to the end consumer through their own e-commerce platform.
In addition to sales to private individuals, they also have a channel aimed at interior designers and architects which is currently growing.
Over the past twelve months, the company's turnover amounted to approximately 670 million Swedish kronor, with operating profit corresponding to a margin of just over 20 percent. Looking at the last three years, growth has averaged over 60 percent per year.
Secures Foreign Investors
Now, the company is raising 105.4 million Swedish kronor in external capital, including from the listed company Creades. The investment gives Creades an ownership stake of approximately 5 percent of the e-commerce company.
However, the entire transaction is led by the American fund Imaginary Ventures, which has previously invested capital in brands such as Skims and Reformation. Actors such as IRIS Ventures and Lauren Santo Domingo are also participating in the round.
The plan going forward is to broaden the range from solely selling rugs to becoming a wider platform for home furnishings.
We are incredibly impressed by Nordic Knots and the founders' development since the start, especially regarding the combination of winning design, strong customer focus and profitable growth. Furthermore, we really like how Nordic Knots successfully challenges and renews a traditional industry. We look forward with great confidence to being part of the continued journey, says John Hedberg, CEO of Creades.
After the capital raising, Nordic Knots will continue to be run by the founders. Lisa Laserow Berglund and Fabian Berglund remain as majority owners and retain their roles as Chief Creative Officer and CEO.
It is important for us to find the right partners for the next chapter in our global growth journey, without compromising our brand values. We are convinced that Creades' experience and expertise will strengthen our business and that together we can accelerate our journey forward, says Fabian Berglund, CEO of Nordic Knots.