Rent the Runway Raises $24.4 Million
High-end clothing website that rents designer digs right off the runway from our favorite designers has recently announced a whopping $24.4 million plug of cash from their latest round of financing. The company has raised a total of $55.4 million dollars to date. We’re wondering what this will mean for the fashion brand. Perhaps a few more showrooms popping up nation wide? Absolutely! And it looks like they’ll also be adding style advisors to their plans.
“The business is continuing to expand very quickly,” Rent the Runway co-founder and CEO Jennifer Hyman told WWD, “in people, marketing and scaling our operation to make sure we are delivering incredible customer experiences.”
For major online retailers, the Rent the Runway experience merges the online and offline market flawlessly offering great customer service on both ends.
“In [this] business, 100 percent of what we send out comes back four days later on purpose,” Scott Friend, managing director at Bain Capital, told WWD. “We have to make it look brand new all over again so we can ship it out again on Thursday, knowing it comes back on Monday. That involves seamstresses and dry cleaning…. this takes a lot of capital to build the business the right way [in order to] scale the business.”