JustFab seals 3rd funding round: 40 million for expansion

Fashion startup JustFab has announced a third round of funding. The 40 million dollars injection of capital will boost the e-tailers international expansion. The company’s management expects to generate over 400 million dollars in sales by 2014.

The fashion startup has just closed a 40 million dollars funding to accelerate its international growth and enter new product categories, as JustFab CEOs Adam Goldenberg and Don Ressler confirmed in an interview with ‘VentureBeat’. This investment will also push JustFab’s move into a new product category, still to be unveiled and set for the end of the year.

“We are creating the next generation of fast fashion. We believe we are building the next H&M or Zara,” Goldenberg told the start-up magazine. “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.” It is now adding 1 million to 1.5 million new members a month.

Growth for the future might imply more acquisitions, so “It’s important to have a strong balance sheet so that if there is a good opportunity to buy something we can,” explained the company’s CEOs.

Third round of investment for JustFab in less than a year

The funding round, the third so far, has been led by Shining Capital Management, a Chinese investment firm that will support JustFab’s expansion into Asia. Previous investors Matrix Partners, Rho Ventures, Technology Crossover Ventures, and Intelligent Beauty have also taken part in the fundraising.

The Series C comes a year after JustFab secured 76 million dollars to expand its footprint and product line-up beyond its mainline offering of footwear for women. Up to date, the fashion startup has raised a total of circa 149 million dollars.

Co-CEO Goldenberg has advanced the company’s hopes to generate over 400 million dollars in sales in 2014 and he anticipates reaching profitability.

“France and Spain so far are going extremely well,” Goldenberg assured when interviewed by ‘TechCrunch’, adding: “so we want to do more in Western Europe.” According to the company, it is currently adding 400,000 members per month in the region, totalling to more than 3 million users in Western Europe.

“We are also looking at Australia, in addition to Asia, because over the next four years we want to build a global brand,” he added.