Online Retailers Feeling Fab-ulous with VC Attention
September 27, 2013
JustFab, a fashion subscription e-commerce company, has raised $40 million in Series C funding led by Hong Kong-based Shining Capital Management. The company has now raised about $179 million in funding to date, including a $76 million Series B investment that valued the fashion retailer at about $304 million in July 2012. That round was led by Rho Ventures and included participation from Matrix Partners, Technology Crossover Ventures and Intelligent Beauty, all of which participated in the new financing. The new funds provide JustFab with cash flow for future acquisitions and other opportunities for growth.
Launched in 2010 as a fashion brand offering women’s footwear, JustFab has since expanded into multiple categories, including handbags, denim, jewelry and children’s apparel. Additionally, the company has topped 3 million members in Europe alone.
In general, the internet retail space has seen a tremendous increase in VC investment in recent years. Capital invested in U.S.-headquartered internet retail companies in 2011 ($927 million) equaled more than the previous two years combined ($609 million), according to the PitchBook Platform. And after the spike in 2011, capital invested increased yet again in 2012 (though not by much), surpassing the billion-dollar mark ($1.03 billion). Not unlike JustFab, a number of internet retail companies have landed similarly hefty deals in the past couple years, including Fab (unrelated), which raised $165 million (in three stages) this year; Etsy, which raised $40 million in May 2012; and Nasty Gal, which raised $40 million in August of last year.