Norway's only impact unicorn has transformed production-on-demand: This is its next move

Founded in 2007 by Henrik Müller-Hansen, Gelato has mushroomed from a local printing service into a global platform reshaping how products are made and delivered.

One of just five unicorn businesses from Norway – and the only one with impact at its core – its software connects e-commerce creators with local producers, enabling on-demand printing closer to customers. The model helps reduce shipping emissions, warehouse storage space and overproduction.

In 2023, 87 percent of packages sold on the platform were processed, packaged and shipped in the same country as the customer receiving the package, according to the company's data.

Gelato’s platform integrates with e-commerce sites, routing orders to a network of local print producers. This enables products like customised t-shirts, photo books, posters, and mugs to be made on demand for creators, small businesses, and larger companies venturing into personalisation.

Operating in over 30 countries, Gelato’s market spans millions of users, from solo entrepreneurs making a living from sales on sites like Etsy, to global brands experimenting with local, more sustainable production.

Two famous mentors

Müller-Hansen admits that it wasn’t initially his core goal to create a sustainability trailblazer. He tells Impact Loop he landed on the idea for Gelato after what he describes as a “very clinical analysis of the world's different industries”, and insights from two visionary mentors: Jan Stenbeck and Lars-Johan Jarnheimer.

Stenbeck built up mobile phone companies Vodafone and Tele2 (where he worked with Müller-Hansen, who later became its CEO), and disrupted media and telecom in Europe by focusing on asset-light business models.

“Jan always said, ‘Never own fixed assets – they become obsolete. Instead, build software and connect to those fixed assets. That way, everyone wins: the consumer, the asset owner, and the software company,’” Henrik recalls.

Never own fixed assets – they become obsolete. Instead, build software and connect to those fixed assets

Applying this mantra, Henrik identified printing as an industry ripe for disruption through software and local networks.

Lars-Johan Jarnheimer, now chairman of Ikea, also played a pivotal role in shaping Gelato’s DNA, having also worked with Müller-Hansen at Tele2.

"Hammer taught me the importance of customer obsession," Müller-Hansen says. "He would always remind us that customers are the queens and kings in our universe, and that philosophy has been part of Gelato from day one."

"The ugliest name"

Originally launched under the name Source Logistics, Henrik decided to rebrand after criticism from his wife, who said it was "the ugliest name" she could imagine.

He turned to branding expert David Placek, who is behind iconic brand names like BlackBerry and Pentium. Placek pitched “Gelato,” saying it encapsulates creativity, colour, and art.

“Everyone loves gelato, it’s unforgettable, and if you don’t consume it, it melts – just like art,” Müller-Hansen says.

Securing the domain involved three years of negotiations with a seller in China, he recalls, but he's convinced the investment was worth it, because the name is so memorable.

In 2020, Gelato launched GelatoConnect, an AI-powered platform to enhance scalability and efficiency for local manufacturers. In 2021, the company secured a $240 million (€220 million) funding round led by Insight Partners, with additional backing from SoftBank Vision Fund 2 and Goldman Sachs Asset Management. The investment is driving Gelato's expansion in the U.S. and Asia, alongside plans to develop local production hubs and explore new offerings such as 3D printing.

Do you define Gelato as an impact company?

"If you look at ESG – environmental, social and governance: We give a creator the opportunity to go global, and we give a local business the opportunity to produce for the global creators. And with governance, we're very meticulous in terms of who we allow into the network from a production standpoint. So from that perspective, we are an impact company."

What kinds of businesses are you working with now?

"The typical customer that we have is a manufacturing company that is doing production on demand – digital production – meaning that customers can produce a single t-shirt or a single book, or mug or water bottle that they have designed on their own as the end consumer."

Have you had any conversations with the big fashion brands?

"None I can disclose publicly. But yes, we have. And why is that? Pre-Covid, very few companies were really looking to sell individualised t-shirts or hoodies or sweaters or sport wares over the internet. But what we're seeing now is that the consumers are really pushing in that direction.

You've seen some large ad campaigns globally, both from Coca-Cola, from Nike, from Adidas, where you can go into the store and you can personalise things. So the long tail of fashion – with the creator economy and with the consumer demand – this is fueling the interest for production-on-demand across the planet."

Aren’t you still promoting a consumption-driven model then? Won’t people wear a bespoke unusual item in their wardrobe less than a wardrobe staple like a plain sweater?

"I am not coming here altruistically and saying that we have solved the world's production and demand problem. But I think we need to speak more about the life cycle of a product and not just the actual production and shipping.

The data tells us that with fast fashion, a customer typically wears that product six to twelve times. But a lot of us have a favourite t-shirt from a concert 20 years ago or something else you love that you have bought that has a personal connection that you will never throw away.

And what data tells us is that when you produce something that you have created on your own, you will be less likely to throw it away. When it comes to personalised design products, you buy, you keep them forever until they break and fall apart."

What are Gelato’s plans for the future?

"I would say that the whole shift and the pivot to software in production is similar to Netflix’s pivot from sending out physical DVDs to becoming a streaming company. And that is the main headline from my side and from Gelato's side.

Of course, it’ll become even more exciting with 3D printing. I think that 3D printing will commercially break through in two to five years. And then most of what we have around us can be produced locally. I think that 3D printing will further fuel the growth and the creator economy, and it will allow us, as you know, manufacturers and software companies to just produce so many more products locally."

Norway has more than 12,000 startups, and Gelato is one of only five unicorns. What do you think is the secret to your success?

"I never think about being a unicorn or not, because the valuation lies in the market, and that fluctuates day by day, week by week, year by year. What I think about is our vision – to rethink manufacturing for the benefit of people and the planet. That vision attracts a lot of global talent.

They leave some of the most famous companies in the world, you know, Amazon, Bain, McKinsey, eBay and they join Gelato. Then if you have a lot of good people, smart, good-hearted individuals, they will attract other smart, good-hearted individuals. And if you surround yourself with good people, I mean, eventually good things will come to you. And probably that's part of the success."

And if you surround yourself with good people, I mean, eventually good things will come to you

That's very modest to attribute the success to the team rather than yourself. What role do you think your work experience before founding Gelato has played?

"I definitely think working closely with Jan Steinbeck [media and telecom disruptor; co-founder of Vodafone, Europe], and Lars-Johan Jarnheimer [current chairman of IKEA, former CEO of Tele2 and leader in European telecommunications] has been absolutely critical.

And then secondly, I would say I spent a couple of years in the underwater demolition team in Sweden [a highly specialized unit within the Swedish Navy, focusing on tasks like underwater reconnaissance, explosive ordnance disposal, and demolition in challenging marine environments] also played an important role.

And contrary to what many people believe, it’s not about being macho, tough, or big. It's more about three things: if you need help, you raise your hand and say, "I need help." If you make a mistake, you raise your hand and say, "I made a mistake." And if you don't know, you raise your hand and say, "I don't know." So hopefully, you know, my intent at least, is to build a [company] culture where people can say, "I need help." "I was wrong." And, you know, "I don't know."

What are the personality traits or soft skills that you think make you a successful CEO?

"I'm not the person that should answer that question. But I can share with you a feedback that I've received over the years that is – consistent, predictable behaviors. I think predictability creates social and psychological safety. On the flip side, I'm also very demanding. It’s demanding to work with me, and it's a lot of hard work."

It’s demanding to work with me, and it's a lot of hard work

Is there anything else you do to embrace impact and sustainability in other parts of your life?

"I believe that the biggest heroes we have in our society are teachers. So one thing I've done together with my wife is we have donated to the Norwegian School of Economics in Bergen and instituted an annual teaching award. The winner gets 250,000 NOK every year. Much of my motivation and my inspiration comes from – and investing in – the next generation. I've also worked together with Norwegian School of Economics, setting up a happiness course. And I now drive only electric vehicles."

What could you personally do better when it comes to impact?

"I think it's very easy to always buy that t-shirt or that sweater …really reflecting a bit more, I don't think I'm good enough at that. I think the society we live in is so marked by brands and consumerism, that carrying your mindfulness with you before you pull out your credit card or your wallet is something we all can benefit from, including myself."