COCOON completes new round of investment with backers including Kering
COCOON, the subscription rental service for luxury handbags, has announced the successful completion of a new round of investment, with new investors including global luxury group Kering.
The large number of existing backers in the business include Depop Founder, Simon Beckerman, and Lilly Wollman, a former partner at Generation Investment, bringing the total investment raised to over £2.5 million.
The announcement strengthens COCOON’s position in the UK’s circular fashion space and comes after a period of impressive growth for the company, which has seen a 200% increase in membership since April 2020.
The funding will allow a scaling of the COCOON platform through investment in a broader depth and selection of inventory, headcount, enhanced logistics and further tech development “to improve the member journey and create a frictionless experience for the community.”
COCOON will also deepen its relationships with leading brands to ensure members have access to the greatest selection of luxury bags, and the investment marks a major step in the company’s ambitions to be the first choice circular solution for bag lovers.
Ceanne Fernandes Wong, CEO and Co-Founder of COCOON, said: “From day one we have been selective and considered about our growth partners, so we are thrilled about the backing from such well-respected and informed investors. With Kering’s incredible history, proven track-record of innovation and deep luxury knowledge, it’s fantastic to have investment from such a powerful market leader. We are like-minded in our vision for a sustainable fashion future and our respect for the luxury codes.
“This funding marks a significant step for COCOON as we grow the collection and expand the business to own more of the circular fashion space. The market is calling out for innovative sustainable solutions and can see that our subscription-based model allows for consistent revenue generation through a challenging time. We look forward to developing the COCOON platform to offer our members a superior experience and unrivalled selection of luxury styles.”
Matt Heiman, Chair and Founder of COCOON, commented: “Our ambition for COCOON is vast, and we know this investment round will allow us to increase, improve and refine our offer for existing and new customers. Global investment into the circular economy has now reached over US$6.5 billion as investors back socially sustainable initiatives. They know that the option to do nothing has passed and they understand the opportunity the circular economy presents.”
Grégory Boutté, Kering’s Chief Client and Digital Officer, said: “We have an ambitious innovation strategy at Kering, which aims at identifying potentially disruptive trends and shaping the future of luxury fashion. As part of this strategy, Kering, through its ventures arm, takes minority stakes in services and technologies for the next generation of luxury consumers.
“This investment in COCOON will enable us to monitor new consumption habits and digital practices. We see the subscription model as a very interesting trend in fashion, and by extending the product lifecycle it resonates particularly well with Kering’s circularity ambition.”
Simon Beckerman, Founder of Depop, added: “We are seeing some impressive valuations for circular fashion businesses as investors recognise that sustainability is inextricably linked to the future of the sector. For me the COCOON model has huge market opportunity and revenue generating potential which means it will become one of the most important pillars of ethical luxury shopping.”