Tapestry Inc. is doubling down on Gen Phoenix, which makes a recycled leather fiber material that the handbag giant sees as both good for the customer and good for the planet. 

Tapestry, which owns Coach and Kate Spade, started working with Gen Phoenix in 2022 and made a small initial investment in the company the following year. 

Now, the handbag giant has taken part in Gen Phoenix’s latest $15 million fundraising round, led by venture capital firm, Material Impact. 

Tapestry nearly quadrupled its investment and now owns 9.9 percent of the Peterborough, England-based firm, which gives a second life to leftover leather scraps with a patented technology platform.

Gen Phoenix said it has been working closely with Tapestry sharing research and development information, design insight and factory floors. 

“This expanded partnership marks a major milestone — not just for Gen Phoenix, but for the future of sustainable materials,” said John Kennedy, chief executive officer of Gen Phoenix, in a statement. “Together with Tapestry, we’re proving that circular innovation can meet the demands of global brands without compromise. It’s a powerful example of what happens when you combine material innovation, leather heritage, shared values and a commitment to scale.”

Gen Phoenix plans to use the new money to expand into additional categories, scale its production infrastructure at its U.K. facility, which already has capacity for 60-plus million square feet annually, and speed the development of its circular leather solution.

Scott Roe, Tapestry’s chief financial and chief operating officer, told WWD that the investment was about innovation on one hand and a desire to follow what’s important to customers on the other. 

“We know this is important to our consumers and particularly to our youngest cohorts,” Roe said, referring to Phoenix’ sustainable approach. “Eighty percent of our business is leather goods. So it’s hard to find an area where we have a bigger impact or a bigger say in the development of an innovative new material.” 

And that new material weighs 30 percent less than virgin leather and meets or exceeds all the company’s physical property goals, Roe said. 

“It’s also really good for the planet, and it is helping us meet our science-based targets as it relates to carbon reduction, et cetera,” he said. 

And as CFO, Roe is also always thinking of the economics of any deal. 

“Purpose and profit need to be in balance,” he said. “And if either one of those get out of balance, then you have a problem.”