Scarosso wants to be the Warby Parker of shoes with $ 11 million from NEO, DN Capital – TechCrunch

Warby Parker first made a name for itself in the United States and now around the world as a provider of bespoke eyewear. Vertical integration – where a company both makes and sells something – has become a hot trait and is charged by the efficiency gains that technology platforms bring. Now, Scarosso (based in Berlin), which makes and sells handmade Italian shoes online, has attracted significant investment because of this model.

It has raised $ 11 million in Series B funding led by NEO Investment Partners, DN Capital and IBB Beteiligungsgesellschaft to grow internationally.

It’s not hard to see why. Scarosso claims to have seen over 300% growth in 2013 alone. And now the brand has courted several fashion industry leaders to join the Scarosso team. Robert Polet, former CEO of the GUCCI Group, and the international model Johannes Hübl have both joined as consultants.

Founded by Moritz Offeney and Marco Reiter in 2010, Scarosso does without middlemen and works directly with producers and customers, which makes its prices significantly more competitive than normal quality shoes.

“We are vertically integrated and sell our products directly to our consumers through our e-commerce platform and our 6 retail stores. By excluding the wholesale workers and distributing the products directly to our consumers, we can reduce the wholesale margin and deliver luxury products at half the price compared to our competitors. Our manufacturers produce for the largest luxury brands in the world and are all based in Italy, ”says Marco Reiter.

Sara Ferrero, Partner at Neo Investments, commented: “Scarosso innovates in several dimensions – this business is multi-channel, vertically integrated, with an incredibly compelling value proposition and modern customer service.”

Its competitors include Jack Erwin, Tods, Crocket & Jones, and Church’s. In the US, it would mentally rival the recently funded Jack Erwin.

The ready-made, bespoke and customer-specific designs are available both online and in stores in cities such as Berlin, Munich, Frankfurt, Hamburg and Vienna. It sources its leather from tanneries, which are traditionally located in southern France and Italy.