Web Retailer JustFab Shows Subscription Services Work
Who says retailers can't compete with Amazon?
Online shoe and apparel retailer JustFab has hired investment bank Morgan Stanley and is apparently seeking new funding in the range of $50 to $100 million, according to several different reports.
The IPO market for online retailers hasn't been stellar, with competitor Zulily missing on Q1 expectations recently (although its market cap has increased $1.7 billion since its November IPO) but it is certainly possible JustFab is thinking about an IPO in the next few years.
JustFab is no stranger to venture capital investment, raising more than $150 million to date. Growth at thee online retailer has exploded over the past few years thank to consumer interest in monthly subscription service. Late last year, JustFab had 1.5 million active subscribers and expects to reach three million in 2014.
The retailer is best known for its $39.95 subscription service in which members receive a new pair of shoes each month.