The white label model is igniting the print market! Two giants merge to create a new ecosystem!
In the future, printing will become increasingly personalized. We can customize any image we want, print it on any product, and have it delivered directly to a specified location. This trend of on-demand printing and personalization accelerated during the New Crown epidemic and will continue in the post epidemic era.
Initially, people began to favor online custom printing due to the need for personalized home décor, as well as social distance and the convenience of online shopping. Today, online shopping has become the preferred method of consumption, and personalized printing products are no exception. With strong support from private equity, more and more companies are building powerful and efficient online custom printing platforms, aiming to achieve higher profits by scaling and automating their operations.
Two Online Printing Companies Merge, Different Models Remain
On November 5, Printful and Printify announced that they would integrate in a merger of equals. As of Nov. 20, shareholders and regulators on both sides had approved the deal and announced new executive teams.Printful's CEO will serve as the new CEO of the combined company, while Printify's CEO becomes president and head of platform. While the two brands will remain independent for now, the name of the new company has yet to be determined.
Both companies provide “white labeling” services to hundreds of thousands of independent designers and retailers, helping them put their designs on a wide range of products and sell them under their own brands. In this way, designers do not have to disclose the actual manufacturer of their products and can focus on building their own brand image. This “white label” model has spawned a large print-on-demand community, providing opportunities for many designers and retailers.
After the merger was announced, the YouTube webcasters who call themselves print-on-demand consultants were initially on the fence about the merger, but quickly came to the consensus that the merger would be a good thing for the community as a whole. Apparel has always been the primary source of revenue for both companies. From the usual T-shirts, sweatshirts, hats, and jackets to more personalized products such as swimsuits and sports bras, almost any wearable item can be customized through printing. In addition to apparel, home décor, office supplies, drinkware and customized gifts are also important product categories. The combined company will have more than a thousand product categories.
The two companies have distinctive business models. Founded in 2013, Printful is a technology-driven company dedicated to helping all types of e-commerce sellers, from micro and small businesses to large corporations, turn ideas into real products. Through on-demand production and perfect fulfillment services, Printful provides a one-stop solution for these sellers. Today, Printful has grown to become a global company serving both direct-to-consumer marketplaces and large corporate clients. The company has established high-quality, on-demand manufacturing facilities on multiple continents and can distribute over a million items per month.
In contrast, Printify, founded in 2015, is a technology-driven platform company. It enables anyone to sell customized products from anywhere with zero upfront investment.Printify focuses on serving individual entrepreneurs and small and medium-sized businesses by turning their dreams into reality and helping them achieve financial independence. It has generated more than 60 million orders, which have been fulfilled by more than eight of the world's leading printers that make up Printify's trusted global network.
One Reddit user has graphically summarized the difference between the two companies, “Printful makes its own products, while Printify integrates products from different manufacturers into one platform.” Either way, Printful and Printify have succeeded in providing strong support for the print-on-demand community in the design-driven, diversified retail space that we often refer to as the “creator economy”.
Institutional Investors Provide Funding to Drive Growth
In May 2021, New York-based private equity fund Bregal Sagemount injected $130 million into Printful, a move that led to a $1 billion valuation, making Printful a unicorn. For a company that originated in Latvia, this is undoubtedly a milestone.
Coincidentally, also born in Latvia, Printify has also been Index Ventures and other well-known venture capitalists 45 million U.S. dollars in investment for its early rapid development to provide strong support. One of Index Ventures' principal investors expressed sincere congratulations on the merger of Printful and Printify. He said, “While both companies have similar cultural backgrounds, their growth paths have been unique, with Printful focusing on building its own manufacturing capabilities and spearheading its expansion into the U.S. market, while Printify is deeply committed to the European market and cultivating local talent. It's a testament to the fact that there isn't just one path to successful entrepreneurship, and that different strategies can lead to the same pinnacle.”
Tech news site TechCrunch hit the nail on the head with its analysis: the recent merger announcement demonstrates that startups face serious challenges to survive as independent individuals in the on-demand manufacturing and creator economy. In particular, the financing environment for late-stage startups in Europe has gotten tougher in recent years, a trend that doesn't appear to be changing in 2025.
It is against this backdrop that the merger of Printful and Printify seems particularly sensible. By joining forces, the two companies can expand their market size and improve their competitiveness without undergoing a major recapitalization or being acquired by a large private equity firm. At least for now, this partnership model offers a new way forward for startups in similar tracks.
Over the past five years, private equity funds have invested enthusiastically in printing, packaging and other related industries, making a total of 315 investments. While print-on-demand businesses make up only a small portion of this total, their impact on the overall online printing landscape cannot be underestimated. These investments provide companies with sufficient capital to expand, automate production, and revolutionize their business models. Investors are particularly attracted to companies that are adept at leveraging digital solutions to streamline order processes, optimize production, and enhance the customer experience.
Companies such as Printful and Printify offer customized product platforms that set new benchmarks in terms of ease of use, product variety, and personalization. Private equity firms are actively investing in these types of companies, which have the ability to serve customers at scale and have promising growth prospects. While Printful and Printify, which are the focus of this article, are primarily involved in apparel and promotional printing, the commercial printing market is seeing similar trends with companies such as Digital Room and Circle Graphics. Traditional printing companies that ignore these trends run the risk of aging their business and becoming less competitive.