Goldman Sach Funds Gelato on Strong Valuation
Asset management companies and banks are usually on the lookout for businesses where they can invest. This helps the funds in generating better returns. Recently, a fund managed by Soft Bank Group Corp and Goldman Sachs Asset Management offered to finance a software company. The financing option protects the interest of the bank, and at the same time, it also provides the required liquidity to this software company. The Norwegian software company that we are talking about here is Gelato.
Gelato sells printing services to customers, and it gives access to the network of providers to the customers. In this funding round, Gelato was able to raise $240 Million. Insight Partners led the investment round. This investment round has had a very positive impact on the valuation of this Norwegian software company. Looking at the numbers, you will notice that the valuation has reached the $1 Billion mark after the investment commitment was given. Existing investors like SEB Pension Fund and Dawn Capital LLP also contributed to the new round of investments that Gelato received.
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Goldman Joins Financing as Norway’s Gelato Passes $1 Billion
The managing director of Insight Partners mentioned that Gelato could be a game changer for prominent entrepreneurs. He will also be joining Gelato as a board member, and his decisions will certainly help the shareholders in maximizing the value of their investments. Let us try and understand the core business of Gelato in a better way. The main clients of Gelato are the customers who have the software capabilities but lack the hardware to print the designs. This is where Gelato comes into the picture, providing printing services to such companies. The companies can get printing services on paper, mugs, clothing, or anything else. This saves the start-ups and the companies from making a large capital expenditure in setting up the printers.
In a recent disclosure, the major stakeholders from Gelato mentioned that they plan to use the funding to expand into the 3D printing business. The expansion will open new opportunities for Gelato, and at the same time, the expansion will also help the company enter a completely new segment. The company also plans to expand its operations in Asia and the United States. As per an estimate, the market for such services will grow to $320 billion by 2025. Gelato is expected to have a major share of this market. Moreover, the company has witnessed massive revenue growth, reinforcing the investors’ confidence.