With a new influx of cash, online fashion and style brand JustFab is looking to raise its profile overseas.
A few months after expanding to Germany, the El Segundo, Calif-based company announced Thursday that it has raised $76 million to help accelerate international expansion.
The Series B round, which brings the company’s total funding to about $109 million, was led by Rho Ventures, and included Matrix Partners, Technology Crossover Ventures and JustFab’s parent company, Intelligent Beauty.
The company’s co-CEO Adam Goldenberg said the company plans to launch in the UK in September and, using Berlin as its European headquarters, intends to continue expanding its presence across the pond. In addition to supporting international growth, he said, the new financing will enable category expansion and potentially allow the company to make acquisitions or explore new opportunities.
“From day one, we’ve always had a vision to be a complete lifestyle brand,” he said. “Our view is that we have millions and millions of members [and] we can sell more fashion categories to them. Our long-term vision is to create the next H&M- or Forever 21-type brand.”
For now, JustFab sells shoes, bags, jewelry and denim but the new funding will allow the company, which designs and manufactures its own products, to move into other areas as well, he said.
Several e-commerce platforms, from Gilt and Beachmint to Stylecaster and Shoptiques and more – give people new ways to shop for fashion. JustFab, which launched in 2010, said it’s been able to attract 6 million members by having in-house fashion consultants design styles manufactured exclusively for the brand, as well as by providing a subscription plan that lets “VIP members” purchase monthly items for $39.99. (Consumers can also opt for a pay-as-you-go plan, which involves slightly higher pricing per item.)
When users come to the site, they’re prompted to take a fashion quiz, which is used to inform style picks for each shopper. Each month, users are presented with a personalized boutique of options assembled by the company’s in-house stylists. If they’re a VIP member, users can make a purchase or choose to skip (and not pay that month). If they forget to skip, they’re charged $39.95, which they can redeem anytime for one style.
By manufacturing their own styles and selling directly to consumers, Goldenberg said they are able to keep their overhead down and offer lower prices than what consumers might find elsewhere. Last year, the company made $28 million in revenue; this year, Goldenberg said he expects it to be closer to $100 million.