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JustFab, an online fashion retailer based in El Segundo just raised an $85 million Series D round, according to a report in the Wall Street Journal. This latest round values the company at $1 billion and brings total funds raised since launch to $250 million. This round was led by Passport Opportunity Fund with participation from previous investors Shining Capital, Matrix Partners and Technology Crossover Ventures. The company sells women’s shoes, handbags, jewelry and jeans via monthly subscriptions.
JustFab’s subscription model has proved popular with shoppers. At the end of 2013, the company boasted 1.5 million members. Subscribers get to pick an item to be shipped to them each month for $39.99. Selections are tailored to each member based on a style quiz they take up-front. Though subscription purchases come at a discount, one-off purchases can also be made on the website.
90 percent of JustFab’s revenue comes from its subscription services and Co-CEO Adam Goldenberg told the Wall Street Journal that the company is on track to do $400 million in revenue in 2014 and $500 million in 2015.
JustFab is also known for its close ties to Los Angeles-area celebrities. In 2011, Kimora Lee Simmons, joined the company as President and Creative Director. Simmons is the former wife of Russel Simmons, a fashion model and celebrity. Kim Kardashian and Kate Hudson are also stakeholders in the company, as their startups, ShoeDazzle and Fabletics merged with JustFab in 2013.
Los Angeles-based Brian Lee also has a stake in JustFab, as he co-founded ShoeDazzle. Earlier this week, his other startup, The Honest Company, an online baby product subscription business, co-founded with Jessica Alba, announced closing a $70 million fundraising round. Lee said that the Honest Company is interested in an IPO.
Similar to The Honest Company’s large round and public ambitions JustFab is looking to a future IPO as well. “We don’t have any immediate plans to go public,” said Goldenberg to the Wall Street Journal. But the company’s mindset “has always been to think and act like a public company. It’s a logical outcome for us.” Goldenberg indicated if there was an IPO it would not come until after 2015.
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