Stockholm-based design brand Nordic Knots has successfully secured approximately $100 million in a new funding round, elevating its valuation to $2 billion. The investment, led by US-based consumer fund Imaginary Ventures, is earmarked to accelerate the company's international expansion and product development. This capital infusion marks a significant milestone in the brand's journey to become a global leader in the premium home interiors market.
A Strategic Investment for Global Growth
The funding round attracted a consortium of strategic investors alongside lead investor Imaginary Ventures. Swedish investment firm Creades contributed $11 million for an approximate 5% stake in the company. Additional participation came from Iris Ventures and St Dominique Capital, the investment platform of Lauren Santo Domingo, signaling strong confidence from experts in brand-driven enterprises.
John Hedberg, CEO of Creades, expressed admiration for Nordic Knots' combination of winning design, strong customer focus, and profitable growth. Co-founder and CEO Fabian Berglund noted the importance of finding the right partners for the company's next chapter. This alignment of values and expertise is expected to significantly bolster the brand’s strategic direction and operational capabilities on the global stage.
Impressive Financial Momentum
This investment follows a period of remarkable financial performance for the direct-to-consumer brand. Over the last twelve months, Nordic Knots achieved revenues of $70 million while maintaining a robust EBIT margin of 20%. This performance highlights the company's ability to scale rapidly without sacrificing profitability, a key factor for its new investors.
The company has demonstrated powerful year-on-year momentum, with sales growing by 85% in 2025 compared to the previous year. Fueled by the new capital, Nordic Knots is targeting revenues exceeding €86 million in 2026. This ambitious goal reflects the brand's confidence in its continued international market penetration and expanding product lines.
Expanding the Physical Footprint
A key component of the growth strategy involves expanding the company's physical retail presence to complement its strong e-commerce foundation. Following a successful store opening in New York City, a new flagship location is scheduled to launch in Los Angeles in June. This move strategically targets the United States, which currently stands as the brand's largest market.
According to CEO Fabian Berglund, the company plans to open more flagship stores in other key global cities, chosen from a fashion-centric perspective. He emphasized the importance of these physical spaces in allowing customers to experience the world of Nordic Knots in real life. This omnichannel approach is designed to deepen customer engagement and foster greater brand loyalty across major international hubs.
Beyond Rugs: Product and Brand Evolution
Founded in 2016 by Liza Berglund Laserow, Fabian Berglund, and Felix Berglund, the brand is known for blending Scandinavian aesthetics with broader fashion influences. Its products are conceived in its Stockholm atelier and ethically handwoven in India by skilled artisans. The company also partners with the GoodWeave initiative, ensuring fair labor conditions and the elimination of child labor in its supply chain.
While renowned for its premium rugs, Nordic Knots is actively evolving into a comprehensive interiors brand. The company broadened its offering by launching a home textiles collection in 2025 as part of this wider strategy. This product diversification is central to its mission of becoming one of the most admired and leading brands in the entire home category.
This substantial funding round, backed by strategic investors, positions Nordic Knots to accelerate its ambitious global growth trajectory. By expanding its retail footprint, diversifying its product range, and building on its proven financial success, the company is solidifying its path toward market leadership. The investment underscores significant confidence in the brand's vision to redefine the premium home interiors space.