Farfetch, a London-based high-end fashion retailer, has raised $86 million, launching the company's valuation to $1 billion, the company announced Wednesday.

The seven-year-old startup is an online marketplace that peddles designer clothes and accessories from more than 300 independent boutiques across the world. With the latest round, the company has now raised a total of $195 million.

The massive price tag makes the company the third high-profile London tech startup this year to ascend to the so-called "unicorn club" of companies that have surpassed billion-dollar worth. Music recognition service Shazam and banking app TransferWise both hit the mark in January.

The company will use the cash to reach new international markets, with plans to expand to Germany, South Korea, Spain and throughout Latin America. Most of the company's sales currently come from the United States and the United Kingdom and it added services in Russia, China and Japan last year.

The round was led by DST Global, a prominent venture capital firm headed by Yuri Milner, who was an early investor of tech giants such as Facebook, Twitter and Alibaba. Previous investors including Vanity Fair publisher Condé Nast and private equity firm Vitruvian Partners also participated this time around.

"Farfetch has a strong team, impressive growth and great potential to capitalize on the fast growing luxury fashion e-commerce market," Milner said in a statement.

According to <Business of Fashion, breaching the billion-dollar mark is a rare feat for fashion startups. Other notable online fashion companies like Yoox, Asos and Net-a-Porter all fell short of a $1 billion valuation as private companies, the trade publication reported.

The company does not hold any inventory itself but works with stores to market the clothing and coordinate shipping prices and payments. This model allows the company to keep overheads low. It pulled in $300 million in sales last year, according to the Financial Times. However, the newspaper reports the company is not currently profitable.

CEO and Founder Jose Neves told FT that he doesn't worry about e-commerce giants like eBay and Amazon muscling into the company's turf because the corporations lack the designer cachet to make them a destination for the type of high-end fashion the company's customers seek.