JustFab has raised $85 million in funding to further the retailer's expansion into Western Europe, as well as its launch into apparel. The e-commerce brand, which includes ShoeDazzle and FabKids, is now valued at more than $1 billion.
The funding was led by Passport Special Opportunity Fund—with investors such as Matrix Partners and Shining Capital—who invested $35 million last year, reported Women's Wear Daily.
The online retailer was founded in 2010 and has raised a total of $250 million. The company plans to use the money to expand its sports line, Fabletics, internationally. Fabletics recently opened in Germany and the U.K.
"As investors, they really understand retail and e-commerce, which is sometimes a unique proposition," Co-CEO Adam Goldenberg told Women's Wear Daily. "This investment will enable us to capitalize on that exploding market and go international more quickly. Active is the new denim. Women are wearing it everywhere."
JustFab's financing is one example of a technology startup raising funds and resulting in valuations of approximately $1 billion or more. Square, a mobile payment company, is even in talks for funding at a $6 billion valuation, and Snapchat, a mobile app specializing in transient photo messages, is holding a funding round at a $10 billion valuation, reported Bloomberg.
About a year ago, JustFab entered the world of brick-and-mortar with a 3,000 sq.-ft. shop located in a suburban Los Angeles mall. The brand joins the growing list of e-retailers opting to try out a non-digital format. BirchBox opened its first brick-and-mortar a few months ago in New York City, as did Warby Parker and Bonobos.
Goldberg believes JustFab is positioned to compete with specialty brands like Zara, H&M and Lululemon (NASDAQ:LULU). He expects retail sales to surpass $500 million next year.
-See this Bloomberg article
-See this Woman's Wear Daily article (subscription)
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