JustFab Raises $76 Million
JustFab is a subscription Internet company that has raised $76 million in funding. Rho Ventures led this round of funding. Rho’s Mark Leschly will join the board of directors at JustFab. Other investors that participated in this round include Matrix Partners, Technology Crossover Ventures and Intelligent Beauty Inc. JustFab has now raised a total of $139 million in funding. JustFab plans on using the funding for expanding overseas and for acquisitions.
“The main purpose of this round of financing is to continue our international expansion,” stated JustFab co-CEO Adam Goldenberg. “On the acquisition front, this round is bigger than what we need, so we’re going to have excess cash on the balance sheet. Companies that could help us with that expansion are intriguing targets.”
Kimora Lee Simmons is the president and creative director at the company. JustFab sells their own brands of shoes, jewelry, and handbags. They charge subscribers $39.95 for each item flat. JustFab has an online store in Germany and they plan to open one in the U.K. this September. JustFab customers are asked to take a style quiz an then they will receive personalized product recommendations. They have about 6 million subscribers.
JustFab plans to hit $100 million in revenues this year. They are adding about 500,000 subscribers per month. The company saves money by handling their own supply chain and hiring staff to design products that are made by Asian manufacturing partners. They ship directly to their warehouse in Louisville, Kentucky.
Intelligent Beauty Inc. is the parent company of JustFab, Intelligent Beauty reported $400 million in revenue last year. Goldenberg and Don Ressler are co-CEOs of JustFab and Intelligent Beauty. Intelligent Beauty runs Sensa Products LLC and DermStore.com LLC.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry