By  on August 29, 2014

LOS ANGELES — JustFab Inc. has raised $85 million in funding to enable the fashion and accessories e-commerce company’s expansion in Western Europe and next year’s full-scale launch into apparel.Led by San Francisco-based Passport Special Opportunity Fund with participation from existing investors Matrix Partners, Technology Crossover Ventures and Shining Capital Management — which last year invested $35 million — the infusion brings the total raised by JustFab to $235 million since its launch in March 2010. Industry sources estimate the post-investment valuation of the company at around $1 billion.“As investors, they really understand retail and e-commerce, which is sometimes a unique proposition,” said Adam Goldenberg, co-chief executive officer. He noted the El Segundo, Calif.-based company’s priorities remain the same — strengthening the balance sheet and investing in newer categories such as the year-old Fabletics activewear (in addition to the fast-fashion division of JustFab and ShoeDazzle, there is also FabKids). Fabletics is the company’s fastest-growing brand, which Goldenberg estimates will be 25 times the size it was in 2013 by next year. “This investment will enable us to capitalize on that exploding market and go international more quickly. Active is the new denim; women are wearing it everywhere,” he said.With nearly $50 billion in sales a year shifting out of traditional retail into e-commerce — the total is expected to be $54 billion this year and $88 billion by 2015 — Goldenberg believes JustFab is poised to compete with global specialty brands like Zara, H&M or Lululemon.The company has been dabbling in apparel thus far, but Goldenberg said the current 500 stockkeeping units will swell to nearly 5,000 in the first quarter of next year.The company is projecting retail sales north of $500 million next year.

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