Source: TechCrunch, Sep 2011
JustFabulous, a fashion retail and styling platform, has raised $33 million in Series A funding lead by Matrix Partners (who also invested in flash sales giant Gilt Groupe) with co-investment from Technology Crossover Ventures and fashion mogul and TV star, Kimora Lee Simmons. Josh Hannah from Matrix Partners joins the board of directors for JustFabulous while Kimora Lee Simmons will become President and Creative Director. This round brings Just Fabulous’ total funding to $62 million.
JustFabulous was incubated by Intelligent Beauty in March 2010 and has since grown to over 2.5 million members. Similar to sites like ShoeDazzle and BeachMint, JustFabulous operates a monthly distribution model.
Each item is $39.95, new styles are added monthly, and all items are actually created and branded by JustFabulous. Co-founder Adam Goldenberg explains that while the quality of the handbags and shoes are high, the site is able to keep the costs down because it works directly with manufacturers. He compared the quality of JustFabulous’ products to those from Steve Madden or Nine West, where prices can range from $60 to upwards of a $100.
For a startup that has only been around for a little over a year, JustFabulous is seeing impressive growth. The site is doing $3 million per month in revenue and was doing $500,000 in monthly revenue a year ago. The company is nearing 3 million members and is on track to sell sell 1.5 to 2 million handbags and shoes in the next year.
The monthly retail model combined with personalized curation is one that is catching on, and seeing success in the e-commerce world. And celebrity endorsements help. ShoeDazzle is cofounded by Kim Kardashian, BeachMint’s JewelMint has backing too from Kate Bosworth and her stylist Cher Coulter, and sister site StyleMint features T-shirts designed by the Mary Kate and Ashley Olsen. The celebrity allure and promotion seems to be key in these types of retail sites. JustFabulous is probably wise to expand to a number of verticals, so that it can compete with all of these niche sites.
Matrix Partners’ Josh Hannah, who’s joining JustFabulous’ board saysthe original model of e-commerce was designed for books and CDs does not work for fashion. “The whole area of fashion e-commerce is an area that we’re seeing pretty broadly disrupted,” Hannah says. “The model of e-commerce for books doesn’t work for clothes. What these guys have done is a pretty big innovation in bringing the customer back every month to learn a lot about them.”