Kering’s venture arm joins funding round for biomaterials start-up Mogu
French luxury group Kering’s venture investment arm has announced its participation in Italian biomaterials start-up Mogu’s latest funding round. Led by CDP Venture Capital and the European Circular Bioeconomy Fund, the series A funding round raised €11 million ($12 million). While the exact size of Kering’s investment remains undisclosed, its involvement is a testament to the growing interest in sustainable materials within the fashion industry. Mogu, which plans to change its name to Sqim following the investment, aims to use the funds to construct a demo plant and further develop its mycelium-based products.
Material innovation faces challenges amid economic downturn
The past year has posed numerous challenges for material innovation. With a bleak economic outlook and rising interest rates, start-ups seeking funding for revolutionary materials have encountered difficulties. The fashion industry, in particular, has witnessed the struggles of several prominent material innovation enterprises. Despite these hurdles, the latest funding round for Mogu demonstrates that there is still faith in emerging biomaterials and their potential to reshape the industry.
Kering’s Balenciaga partners with Mogu on mushroom-derived leather
Kering’s venture arm’s investment in Mogu is not their first collaboration. In 2022, the luxury group’s subsidiary, Balenciaga, released a highly exclusive collection of coats made from Mogu’s mushroom-derived leather alternative. This limited-run collection received significant attention for its innovative approach to sustainable fashion. Balenciaga’s partnership with Mogu showcased the luxury brand’s commitment to exploring and investing in cutting-edge biomaterials.
Mogu secures funding to expand mycelium-based products
The funding provided by CDP Venture Capital, the European Circular Bioeconomy Fund, and Kering’s investment will enable Mogu to expand its range of mycelium-based products. Mycelium, the vegetative part of a fungus, can be manipulated and transformed into a leather-like material, making it a promising alternative to traditional animal leather. These funds will support the construction of a demo plant for Mogu, which will further boost the company’s research and development efforts in this field.
The hurdles facing sustainable materials in the fashion industry
While innovative biomaterials like Mogu’s mycelium-based products have gained attention and support, the fashion industry still faces significant obstacles in adopting sustainable materials on a large scale. More sustainable options often come with higher production costs, making them less accessible for many fashion brands. Additionally, convincing consumers to embrace these new materials and change their purchasing habits presents another challenge. Despite these hurdles, companies like Mogu, backed by investors such as Kering, are pushing forward with the hope of revolutionizing the fashion industry and reducing its environmental impact.
Learn more:
What’s Blocking the Rise of More Sustainable Materials?
Weaker-than-expected demand for Swedish textile recycler Renewcell’s first commercial volumes of recycled cellulose pulp has sent the company’s stock price plummeting and highlighted broader hurdles challenging efforts to lessen fashion’s environmental footprint.
Analyst comment
Positive news: Kering’s venture arm joins funding round for biomaterials start-up Mogu.
As an analyst, I predict that the market for sustainable materials in the fashion industry will continue to grow due to investments like Kering’s involvement in Mogu. This funding round demonstrates confidence in the potential of biomaterials and their ability to reshape the industry. Mogu’s expansion of mycelium-based products will contribute to further research and development efforts in this field. However, the fashion industry still faces challenges in adopting sustainable materials on a large scale, including higher production costs and the need to convince consumers to embrace these new materials.
