Rent the Runway has raised $60 million in a Series E round of funding.
The latest round was led by Fidelity Management and Research Co., and includes participation from existing investors Technology Crossover Ventures, Bain Capital Ventures, Highland Capital Partners and Advance Publications. The company has raised $190 million in the aggregate.
The company said the latest round of financing will be used to “accelerate the company’s growth as it continues scaling its à la carte subscription rental products, retail stores and operational capacity.”
The company said it will scale the business in four key areas: the à la carte rental product, which now has 6 million members throughout the U.S.; the Unlimited subscription business, giving women access to $40,000 worth of designer apparel each year for a fixed monthly price; expansion of retail stores, currently in six cities; and investing in its operations, which includes its reverse logistics platform.
Jennifer Hyman, cofounder of Rent the Runway and chief executive officer, said, “We are coming off our most successful year since the company’s inception, with the launch of our Unlimited subscription business, our partnership with Neiman Marcus and our new flagship store in New York.”
Rent the Runway was founded in 2009. It currently has retail locations in Chicago, New York City, Washington, D.C., Los Angeles, San Francisco and Las Vegas. The San Francisco store is a shop-in-shop in Neiman Marcus. The most recent freestanding store opening was earlier this month in Manhattan, a 5,000-square-foot flagship, in the Flatiron district. The store replaces a long-running pop-up shop in the same area.
Hyman said in December that the company plans to open 15 flagships in major metropolitan areas in the U.S. Two units are scheduled to open in the first quarter of 2017, although the locations have not been disclosed. The company plans to rent out $1.4 billion in retail value of designer merchandise in 2016.