French luxury goods group Kering SA has participated in a financing round for Italian biotech company Mogu Srl (also known as Squim), which produces mycelium-based materials through its Ephea and Mogu product lines.
Mycelium is the root structure of mushrooms and Mogu is the first biotech company to cultivate mycelium on a pure basis. To do this, the company uses a process that excludes contaminating chemicals during the growth process and guarantees consistent quality.
Mogu is raising a total of 11 million euros
This convinced the investors, who pledged a total of 11 million euros in the Series B financing round. The financing was led by CDP Venture Capital and co-led by the European Circular Bioeconomy Fund (ECBF VC). Kering Ventures and existing shareholder Progress Tech Transfer were significantly involved.
The money is intended to enable further scaling of industrial activities such as a demo plant, as well as expanding the team and strengthening research and development.
“Innovation plays an essential role in our Kering sustainability strategy. We are proud to be part of this fundraising today as we strongly believe that alternative materials are part of the solutions to achieve our environmental goals. The innovative alternative developed by Sqim can help expand our range of high-quality materials. In addition to our internal laboratories, Kering teams are committed to building an external ecosystem of innovators and companies so that these innovations can be adopted at scale. With our new ambitious goal of reducing absolute emissions by 40 percent, we need innovative players like Sqim now more than ever to accelerate the transition to a more sustainable industry,” comments Marie-Claire Daveu, Head of Sustainability and Institutional Questions from Kering, in a statement.
Ephea is described as the “most organic, practical and environmentally friendly alternative to leather and synthetics” for use in luxury fashion products. The minimal consumption of resources and low carbon dioxide emissions make it a sustainable alternative. The material made its runway debut as a maxi hooded coat for Balenciaga Fall/Winter 2022 and won the 2023 Andam Innovation Prize in April last year.
“We predict a remarkable shift in the fashion industry as consumers and brands increasingly move away from animal-based leather. We are thrilled to be part of Sqim’s journey as their products represent the future of sustainable fashion, where luxury quality and cruelty-free are not mutually exclusive,” explains Marie Asano, Partner at ECBF.