Norwegian Gelato raised $240M at $1B led by Insight Partners

 Norwegian Gelato raised $240M at $1B led by Insight Partners

Gelato is a platform based in Norway which allows creators to make and ship a customized product demanded by customers with fast delivery under little or no investments. They have announced about raising USD 240 million in recent funding. Their business model is quite unique with a production network connecting globally which helps in the expanding creator economy. The company also reduces the obstacles of entrepreneurs and creators by providing them with suitable production costs and fast delivery in e-commerce without prior investments.

The recent round was led by Insight Partners, private equity and global venture firm, based in New York with active support from SoftBank Vision Fund 2. The funds are being administered by Goldman Sachs Asset Management, along with some previous investors like SEB Pension Fund, John Hepburn, Gelato chairman, Tellef Thorleifsson, CEO of Norfund, and so on.

This addition of capital shall help Gelato in improving its market penetration and expansion in Asia and US as well as in the growth of new products and local production hubs for new ideas like 3D printing. Gelato has been producing and distributing customized products like clothing, wall art, books, home decor, etc. to customers globally using its hyper-active network of software and production partners around the world. Their customers include e-commerce entrepreneurs like Your Film Poster and Andy Okay as well as companies like Canva who work worldwide. The orders are made as per the customer requirements, thus reducing problems with wastage, costs, delivery time and carbon emissions.

The customized products market is expanding and can be predicted to raise from $230 billion to over $320 billion within 2025, supporting the creators and entrepreneurs who sell custom-made products online. Shopify, Etsy and other platform companies have helped these businesses to sell their products, however, Gelato provides them an instantaneous global reach using local production and distributes them anytime, anywhere.

Gelato was founded in 2007 by CEO Henrik Muller-Hansen. They opened their API-based platform to eCommerce in 2019, and have supported both larger brands and individual creators and sellers globally. Gelato is on a mission to enrich the creator economy and e-commerce by reaching any customer anytime, over any product. The company has a huge network connecting over 100 production partners from 33 countries to eCommerce sellers for about 5 billion global customers in 72 hours. They have branches in Santiago, Barcelona, Stockholm, Boston, Madrid, London, Moscow, Shanghai, Mumbai, Tokyo and Sao Paulo. Their headquarters are in Oslo, Norway.

Insight Partners invest in software ScaleUp businesses and high-growth technology, which can bring vivid transformation in their industries. The company was founded in 1995, and they have invested in over 400 companies globally since then, and have raised over $30 billion in capital from a series of funds. They’ve worked with Shopify, Twitter, Shutterstock, Wix, etc. Gelato is the first Norway-based investment made by Insight. Together, they help sellers gain fast access to customers globally, at a low cost.