BaubleBar has raised $20 million in a Series C funding round.
The round was led by past investors Accel Partners, Greycroft Partners, Burch Creative Capital and Aspect Ventures. New participants are Hubert Burda Media and DSW, each of which brings expertise to the fast-fashion jewelry firm ranging from international expansion to large-scale operations. With the closing of the Series C round, the aggregate raised so far is $35.6 million.
The company said it plans to use the funding to support its growth, specifically for marketing and business development, and to add staff. Another key focus is beefing up its infrastructure.
Founded in 2011 by Amy Jain and Daniella Yacobovsky, the firm uses real-time data to allow it to utilize a reactive business model to give customers what they want. The company’s core customer is a female between the ages of 25 and 40. The site ships within the U.S. and overseas to Germany, France, the U.K., Canada, Australia, Singapore Hong Kong and Saudi Arabia.
Yacobovsky said the business continues to be primarily digital, although there is a small wholesale component at Anthropologie, Bloomingdale’s, Nordstrom and QVC. For holiday, the company tested a tech line of accessories that included cell-phone cases, speakers and ear buds in partnership with Target Corp. There are no plans at the moment to create a full-blown tech line, although from time to time, there may be experiments outside the jewelry box.
“We want to accessorize your life in whatever form that takes. She’s very young, very digitally savvy, and tech accessories are perfect for her. She’s always got a phone in her hand, always has a phone case with her — that’s always a part of her life,” Yacobovsky said.
The company periodically tests pop-up shops to learn from the off-line space. “It’s an important place to be when you’re building a brand,” Yacobovsky said. The company had a concept store at Roosevelt Field in New York for six months that just ended to learn about the customer and “how she reacts to product off-line.”
While “we definitely pretty actively think about a company-owned store,” Yacobovsky declined to provide any timeline for when that could happen.
For now, she said the company has been focused on fund-raising so it can support its growth, such as “investing in software and systems to build scale and still be profitable.” Yacobovsky said on average, there are anywhere between 750 to 850 sku’s on the site, with on average an entire site turn every three to four months. The company continues to introduce product weekly.
The average order basket has between one and two items. The average purchase is in the $45 to $50 range, although price points start at around $30 and can go as high as $350.
There are about 500,000 members, and they tend to purchase five to six times a year.