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JustFab, an online boutique that personalizes every user’s shopping experience, has raised $76 million.The LA-based startup is an Intelligent Beauty company and it has raised $139 million to date. Intelligent Beauty put the first $30 million into the company and Matrix Partners led a $33 million Series A. The new Series B round was led by Rho Ventures with participation from Matrix Partners, Technology Crossover Ventures and Intelligent Beauty.
JustFab is only two and a half years old, but co-CEO Adam Goldenberg tells us the company will generate about $100 million this year. He thinks JustFab can grow to $500 million in sales by 2013.
Goldenberg and his 300 employees want to build an H&M or Forever 21 type e-commerce brand. JustFab has more than 120 fashion consultants who create the personalised boutiques. Everything it sells is designed, manufactured, branded and sold by JustFab. Like Warby Parker, it’s a vertically integrated business model. Since there’s no designer or retailer in the equation, JustFab can afford to sell high-quality items at very low prices.
JustFab has 6 million users and Goldenberg says 500,000 new customers are joining every month. The users can either subscribe monthly for $39.95 or they can shop one item at a time. Subscribers can forgo a month of shopping so long as it gives JustFab enough notice. So whether they’re shopping or skipping, users always have to visit JustFab at least once per month; JustFab never has to re-acquire its customers.
The company frequently gets compared to other LA startups, ShoeDazzle and Beachmint. But Goldenberg says there are some key differences. For starters, ShoeDazzle did away with its monthly subscription model a few months ago. Goldenberg says JustFab is also trying to build a complete fashion brand, not just a shoe brand (although it does ship millions of pairs of shoes per year). Unlike Beachmint, JustFab is one brand and one site; Beachmint is creating a network of fashion brands.
So what is Goldenberg going to do with the fresh $76 million? “This is a business that needs a lot of scale and infrastructure to be successful,” he says. He plans to expand to different categories. Currently JustFab offers jewelry, denim, shoes and bags. In addition, JustFab will continue aggressively growing its customer base. It will also launch JustFab in the UK in September.
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