M.Gemi, a direct-to-consumer luxury shoe brand has raised $18 million in Series B round of funding led by Accel along with other existing investors General Catalyst, Forerunner Ventures and Breakaway Ventures. Till date, the company has raised a total capital of $32 million.
Founded in March 2015 by Ben Fischman, M.Gemi is a direct factory-to-consumer luxury shoe brand that launches new, handcrafted Italian shoes every monday.It has partnered with Italy’s much desired specialty factories to reinvent luxury shoes. The partnership is to help in quickly responding to client reactions with weekly adjustments to its supply chain. The company’s modern and unique approach allows it to unveil new, limited edition handcrafted models at historically impossible prices every single Monday and then diappears within 12 weeks. The prices of the shoes range from $128 to $298.
CEO Ben Fischman said, “The luxury category has sold at high price points with high margins for so long that it obscured the need to innovate. We saw this void and set out to offer clients with a uniquely compelling way to satisfy her appetite for high-quality shoes.” He also added, “Other retailers use a lot of sales and short-term product promotions; we use newness to drive interest, and that’s what clients want in the long run.”
With the fresh funds, M.Gemi plans to build data-centric inventory management systems and invest in innovative and creative marketing strategies. It also plans to strengthen its team. Operating at Boston and Florence, it works to increase the employees from 45 to 65 in the near future.
Harry Neils, partner at Accel said, “We are excited about our partnership with M.Gemi. The luxury market is prime for disruption and we believe the M.Gemi team has the experience and expertise to do it.”
M.Gemi’s incredible quality, prices and weekly launches have attracted the clients, leading to incredible repeat buying rates much above the company’s own superior expectations.