JustFab is on a meteoric rise, closing a whopping $85 million round — less than one year after bringing in $40 million in its third round of funding.
The 5-year-old company got its start in shoes, offering a fixed-price ($39.95) monthly shoe subscription to its members, eventually adding additional categories such as bags and clothes. Now it’s raising mountains of cash at an alleged $1 billion valuation and putting itself on what appears to be a path to an IPO, as Pando noted.
“We are creating the next generation of fast fashion. We believe we are building the next H&M or Zara,” co-founder and co-chief executive Adam Goldenberg told VentureBeat back in September. “JustFab has been able to successfully expand internationally, where other companies haven’t, and we will continue our expansion plans to continue building a global fashion brand.”
The company, which owns fashion label and designs its items in-house, is looking to open a distribution center on the West Coast, to continue to invest in its new brand Fabletics, and to generally use the new capital for manufacturing and inventory.
JustFab acquired fellow shoe-subscription company ShoeDazzle a year ago to create a massive online shoe retailer.
Passport Special Opportunity Fund led this new round, with additional participation from existing investors Shining Capital, Matrix Partners, and Technology Crossover Ventures.
The company was founded in 2010 and is based in El Segundo, Calif. JustFab has raised $249 million to date.