Kering invests in a start-up specialising in biomaterials 2024
Kering is considering to invest in Sqim, also known as Mogu, an Italian company. Sqim is known for its biomaterials.
Italian biomaterials start-up Sqim (Mogu) is being supported by Kering
As part of its first significant funding round, the French luxury group, through its venture capital firm Kering Ventures, has backed the Italian start-up that specializes in biomaterials made from mycelium (mushroom roots). Together with other investors, CDP Venture Capital, Progress Tech Transfer, and the European Circular Bioeconomy Fund (ECBF VC), the company took part in this 11 million euro funding round.
“The financing was led by CDP Venture Capital, co-led by ECBF VC, with significant participation from Kering Ventures and existing shareholder Progress Tech Transfer,” the company said in a statement. In the context of this fundraising, “the investors have taken stakes”, it adds.
The company, led by CEO Stefano Babbini and President and Director of Research and Development Maurizio Montalti, was established in 2015 in Inarzo, near Varese, north of Milan. In 2023, the company won the Innovation Award at the prestigious Andam competition. By creating new materials whose manufacture has a minimal impact on the environment compared to traditional production processes, particularly in terms of water consumption, energy use, land occupation, and CO2 emissions, it takes advantage of the potential of technologies linked to mycelium in various application sectors.
Stefano Babbini began his career with Mogu, a firm that specialized in ecological construction and interior architecture, especially in the production of acoustic panels. More recently, he introduced ephea, a line of novel materials designed for the fashion industry. At the end of 2022, this biomaterials made entirely of mycelium made its debut on the market in the form of a maxi coat created especially for Balenciaga that featured a leather-effect hood made from ephea.
The company, whose legal name is still Mogu. Srl but will change to Sqim officially upon the completion of the operation, explains that the funds raised will enable it to expand the technology platform in the future, accelerate its journey to full industrial scale, increase research and development efforts, and expand the team.
Marie-Claire Daveu, director of sustainable development and institutional affairs at the french company, comments:
“The innovative alternative developed by Sqim can contribute to expanding our offer of high-quality materials. In addition to our internal laboratories, Kering’s teams are interested in building an external ecosystem of innovators and companies so that these innovations can be adopted on a larger scale.”
Maurizio Montalti, chief mycelium officer and co-founder of Sqim, said:
“Allow for the most effective market penetration of positively disrupting materials and products in Fashion, Interior, Automotive, and many more industries, to create positive impact, while contributing to shaping a more ethically and ecologically responsible industry.”
In the midst of a general slowdown in the luxury market, Kering, the company that oversees fashion houses like Gucci, Saint Laurent, Bottega Veneta, Balenciaga, and Alexander McQueen, reported a 13% decline in revenue in Q3. The investment division of the Kering Group, Kering Ventures, is in charge of obtaining minority stakes in start-ups.
Manufacturers of alternatives to leather, such as Gozen, Bolt, and MycoWorks, have been expanding their market share in the consumer goods industry as biomaterials gain popularity due to their sustainability claims.
The luxury furniture company Ligne Roset has entered into an agreement with MycoWorks “to procure a significant portion of the production capacity” for its material, Reishi, a bio-textile made from mushrooms. The company is able to expand “millions of square feet of the company’s leather alternative” annually thanks to the construction of a large 136,000 square foot MycoWorks facility in the United States, which opened in 2023.
Conclusion: Mogu, an Italian company also called Squim, is known for its biomaterials and, for that reason, Kering is interested in supporting it.
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