Rent the Runway inks $125 million investment
The latest financing is the largest funding round the NYC-based rental service company has raised to date, and will bring total equity raised to approximately $337 million since its inception.
“Shared, dynamic ownership is a movement that Rent the Runway has pioneered over the last decade and we’re excited to continue to lead the market and innovate our subscription service,” said Jennifer Hyman, co-Founder and CEO of Rent the Runway.
The capital will go towards three things: subscription growth, assortment expansion and infrastructure, said the firm in a press release.
The company plans to broaden its assortment and category offerings to serve all parts of customers’ lives including the closet, home and beyond.
Rent the Runway is also ramping up its infrastructure with plans to open a second fulfillment facility in Texas this spring. Meanwhile, accelerating the growth of its unique subscription service will be a main focus.
Following the success of its unlimited subscription business, it introduced a monthly subscription service in October 2017, which has grown 160 percent year-over-year.
Since launching in 2009 as an online service, the company has also expanded into brick-and-mortar with locations in New York City, Chicago, San Francisco, LA, and more.
The rental industry is estimated to be worth $2.4 trillion.
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