TechStyle Group And How It Operates

In March of 2010 Adam Goldberg and Don Ressler co-founded the fashion oriented TechStyle Group in El Segundo, California. TechStyle Group is the parent company of a collection of online fashion retailers. To date they operate JustFab, Fabletics, FabKids, Shoedazzle, and P.S. by JustFab. In 2011 they brought in Kimora Lee Simmons as President and Creative Director of the company.

TechStyle has brought in funding from 6 rounds so far. The company is one of the very few successful startups that is called a unicorn due to it bringing in more than $1 billion in venture funding. Some of the large investor that have funded TechStyle includes Passport Special Opportunity Fund, Matrix Partner, Shining Capital, and Trinity Capital Investment. Adam Goldberg commented that he believes the company has an opportunity to build TechStyle into a $3 to $5 billion dollar company. The company generated $400 million in revenue in 2014 and increased that to $500 million in 2015. In addition, the company has been profitable in every month which generally doesn’t happen at a start-up. Goldberg also indicated that they are eyeing an IPO in the not too distant future.

The online websites run on a subscription basis. Membership costs $39.95 and while joining the customer fills out an online survey in order to determine what fashions they prefer. At the beginning of every month the customers personal stylist selects an outfit based on those preferences. The customer can at that point either accept the chosen outfit, pick out their own, or opt out of the month for no charge.

JustFab and Fabletics are also operated as all-inclusive brands. Not long ago they launched an “All Size” collection in order to fit every body type. In a statement, Don Ressler said that they want every woman to feel confident in her clothing, and that was where the idea for the “All Size” collection came from. He also said that #FABforAll would offer trendy clothes and styles to more women in a broad range of sizes.