On-demand fashion rental service Le Tote has raised $15 million in a Series B round.
The round was led by AITV, with participation from existing investors Lerer Hippeau Ventures, Azure Capital, Simon Venture Group, Epic Ventures and FundersClub.
Le Tote, which provides members with unlimited apparel and accessories delivered to their door, said the funding will enable it to continue to build its executive team, as well as make further investments in technology.
The data-driven, flat monthly fee fashion subscription service began in 2012. Le Tote said it is on track to deliver more than two million items to customers.
Rakesh Tondon, cofounder and chief executive officer, said, “We’ve been helping empower women and improving their lives by making fashion affordable and accessible to every woman in America everyday while also rethinking how people interact with their closets and the retail industry as a whole.”
Tondon said its leadership team over the past year is helping the company “effectively analyze and share data with brands and customers.” Executive hires in the past several months have been in the areas of merchandising, marketing and data sciences.
The data collected is at every point of brand partner and customer interaction. From the customer’s survey on fit and style preferences to individual product reviews and tens millions of items added to customer wish lists, the data helps companies with buying and merchandising, as well as providing feedback to the brands.
Le Tote’s concept is to mimic the off-line behavior of swapping and sharing apparel through a national, online service. Customers can borrow unlimited apparel and accessories for $49 a month, and maternity apparel for $59 a month. Each shipment includes three pieces of apparel and two accessories. Customers can swap items ahead of delivery, keep the items as long as they like and have the option to purchase at 20 to 50 percent off the retail price. The company partners with more than 80 brands, including Free People, BCBGeneration House of Harlow, French Connection and Vince Camuto.