Rent the Runway receives $21 million-dollar investment
Blue Pool Capital is a multibillion-dollar fund which makes investments on behalf of a group of long-term investors, including Tsai and Ma, in both public and private equity.
In a statement to FashionNetwork.com, Jennifer Hyman, Rent the Runway co-founder and CEO, confirmed the investment, stating, “Over time, we have been fortunate to build a great relationship with the Blue Pool team, and I am delighted to have such forward-thinking business leaders behind Rent the Runway as we embark on our biggest growth stage yet.”
Rent the Runway launched in 2009 as an online service renting designer dresses to customers for special events. The company has since opened brick-and-mortar locations in New York City, Chicago, San Francisco, LA and Washington, DC, and expanded its services to cover rentals of everyday wear.
This round of investment reportedly values Rent the Runway at around $800 million, following the company’s last major round which saw it receive $60 million in Series E funding from investors led by Fidelity Management in 2016.
Apparel and accessory rental services and sharing platforms are currently a rapidly growing industry, with luxury items such as jewelry and designer watches and clothes proving particularly popular on sites like Flont and Armarium, which offer consumers the opportunity to experience high-end products at a reduced price.
It is a wave that Rent the Runway has been successfully riding since launch and, having observed a 125% increase in its unlimited subscription business last year, the company was also able to introduce a monthly subscription service in October.
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