JustFab Inc. was founded in 2010, and it tops the growing list of fashion subscription companies. Its brands include JustFab, Fabletics, ShoeDazzle and FabKids. The firm is headed by Adam Goldenberg and Don Ressler, who are also the co-founders. In 2016, the investors of the company and the management agreed to shed its old identity. This resulted in the change of the company’s name from JustFab Inc. to TechStyle Fashion Group.
Rebranding is one of the changes the company is implementing to make it a powerhouse in the fashion industry. TechStyle Fashion Group aims at using data, personalization and vertical integration to control its processes that range from product development, manufacturing, distribution and marketing. Software development is also another aspect the company is reimagining to provide exciting products and service to customers.
In his statement when the new corporate identity was revealed, Adam Goldenberg said that the new name reflects the transformation of TechStyle Fashion Group from being an on-trend fashion seller to a branding- building company, which is guided by data and personalization.
JustFab Inc. embarked on a six-year journey that was aimed at making the company a leading online retailer that sales its brands. The change of the name signaled the end of the expansion journey the firm had started in 2010.
The raising of capital worth $85 million in 2014 forms part of the company’s expansion plans. This funding round was spearheaded by Passport Special Opportunity Fund, who is a new investor. Existing investors Shining Capital, Matrix Partners, and Technology Crossover Ventures, also were given a chance to take part in the round. The new capital injected, raised the company’s capitalization to $ 250 million. However, other sources estimate that TechStyle Fashion Group is valued at $1 billion. This value puts JustFab ahead of many e-commerce companies, which have not even come close to attaining such capitalization.
According to Adam Goldenberg, the decision to raise more funding was informed by the interest many investors had shown of investing in their firm, and since the activities of the company are capital- intensive, he saw that this presented a great opportunity of injecting more capital to the company’s balance sheet.
The capital raised from this round is a clear indication that the company is forging forward into becoming a public company. Adam and Don Ressler admit that their management is working closely with the investors to grow JustFab into a business worth either $3 billion or $ 5 Billion.