Swedish Rug Brand Nordic Knots Secures €86 Million Investment, Valuation Hits €1.9 Billion

Introduction

In a significant leap for the home interiors market, Stockholm-based Nordic Knots has raised an impressive €86 million ($100 million) in new funding, boosting its valuation to €1.9 billion ($2.2 billion). This fresh capital injection is poised to fuel the company’s ambitious international expansion plans, marking a pivotal moment in its growth trajectory.

Strategic Investment and Expansion Plans

The latest funding round is led by US-based Imaginary Ventures, with notable participation from Swedish investment firm Creades, which contributed €9.6 million (SEK 105 million), along with Iris Ventures and angel investor Lauren Santo Domingo. Nordic Knots’ CEO and Co-founder, Fabian Berglund, emphasized the importance of this investment, particularly in enhancing the brand's physical presence through flagship stores in key fashion-forward cities. “We really like the idea that we can open up doors that let people experience the brand in real life,” Berglund stated.

Market Position and Growth

Founded in 2016 by Liza Berglund Laserow, Fabian Berglund, and Felix Berglund, Nordic Knots has carved a niche in the home furnishings space, focusing on Scandinavian design aesthetics. The company’s products are crafted in Stockholm and handwoven in India, reflecting a blend of quality and style. Its partnership with the GoodWeave initiative underscores a commitment to ethical production practices.

Nordic Knots’ financial performance underscores its growth potential. In its most recent financial year, the company reported a turnover of €34 million (SEK 377 million) and a profit of €6.9 million (SEK 75 million). Recent figures indicate a surge in revenue to €61 million (SEK 670 million), with an EBIT margin of 20%. The company has experienced an impressive 85% sales growth in 2025 compared to the previous year.

Insights and Implications for the Startup Ecosystem

Nordic Knots’ successful funding round and substantial valuation highlight the untapped potential within niche segments of the home interiors market. While adjacent sectors like home services and renovation have attracted significant investments, Nordic Knots stands out with its design-focused approach and robust financial performance.

For startups and investors, this development underscores the importance of identifying and capitalizing on underrepresented market segments. Nordic Knots’ strategy of blending online and offline retail experiences offers valuable insights into how brands can differentiate themselves and enhance customer engagement.

Conclusion

As Nordic Knots continues to expand its product lines and international footprint, it sets a precedent for innovation and strategic growth in the home interiors industry. The new capital will not only support retail expansion, particularly in the US, but also reinforce the brand’s positioning as a leader in design-led home textiles. With plans to exceed €86 million ($100 million) in revenue by 2026, Nordic Knots is poised for continued success, offering a compelling case study for startups aiming to scale globally.

Source: EU-Startups