JustFab Acquires Subscription-Based Kids Clothing Service FabKids

JustFab, a fashion retail and styling platform, is announcing that it has purchased children’s fashion brand and personalized e-commerce service, FabKids. Financial terms are not being disclosed.

The kid-focused e-commerce site was launched by ShopStyle founder and serial entrepreneur, Andy Moss, and mom and actress Christina Applegate, in August 2012. Instead of offering a box of separates shipped monthly, FabKids sends out one complete outfit it has designed in-house and personalized to the child, based on a custom profile filled out at signup.

The company also raised $2.6 million in a Series A round of funding, which was led by Hillsven Capital, and saw involvement from Sugar Inc.’s Brian and Lisa Sugar, as well as other Silicon Valley angels.

JustFab has a slightly similar model to FabKids, but for an adult market. The company was incubated by Intelligent Beauty in March 2010 and operates a monthly distribution model, as well as a standalone e-commerce destination. JustFab, which saw $100 million in revenue last year and now has 10 million members, recently raised $76 million in funding.

With FabKids, JustFab has an entry point into the children’s vertical, which, as seen by the growth of Zulily, is a huge market. FabKids will leverage JustFab’s integrated supply chain from source manufacturing to the fulfillment center in Louisville, KY, which currently ships more than 250,000 packages a month. In fact, FabKids is scheduled to launch its boys clothing line in Q3 of 2013.

The FabKids team will remain based in San Francisco and will continue to be led by Moss and Applegate. JustFab will migrate FabKids.com onto JustFab’s existing platform and its product and technology team will join JustFab’s team.

Adam Goldenberg, co-CEO of JustFab, explains to us that the acquisition was just one step in the company’s goal of becoming the next-generation Zara. He sees FabKids as becoming the BabyGap to the JustFab “Gap” empire. He adds that sales are currently up over 250 percent from last year.

Next up for JustFab? Additional international expansion. The company is in the U.S., Canada, the UK and Germany and is eyeing other markets.