Pact has announced a €10 million funding round to finance the development and industrialisation of a collagen-based biomaterial designed as an alternative to leather.

The funding round was led by innovation-driven and sustainability-focused funds, including Hoxton Ventures, ReGen, Untitled, and Polytechnique Ventures. The funds are earmarked for the advancement of the solution known as Oval, a collagen-derived material enhanced with natural ingredients and finished using traditional techniques, offering brands a sustainable alternative to leather.

“Unlike other leather substitutes, which often incorporate plastics as a core component, Pact’s first material, Oval, is the only leather-inspired material made from natural collagen—a premium ingredient commonly used in high-end cosmetics, skincare, and pharmaceuticals,” the company stated.

The Pact project was initiated in 2020 by scientist and engineer Yudi Ding, in collaboration with physicist Niels Ramy. Four years later, the duo claims they are capable of producing supple, refined skins with “exceptional durability,” which can be adapted to any texture, pattern, or colour.

“By creating remarkable and adaptable new materials inspired by the natural world, we are ushering in a new era of collaboration between science and elegance,” said Yudi Ding. “We aim to provide the luxury and fashion industries with access to innovative, unparalleled quality products while drastically reducing their carbon footprint.”

The market for leather alternatives has seen significant growth over the past decade, encompassing fungal-based materials and plant-derived by-products. Companies like VTT, Ecovative, Polybion, Tomtex, Gozen, and Spiber—a protein-based material specialist that scaled to industrial production last year—are key players in this expanding field.

However, this competition has caused friction within the traditional leather industry. In 2021, the French leather sector, the world’s third-largest exporter of hides and raw skins, commissioned a study to demonstrate the superior physical resilience of genuine leather compared to the numerous vegan alternatives now on the market.