The fashion resale and borrowing market is making waves again.
Le Tote refers to the deal as a strategic partnership, and says the move will expand the Le Tote community and allow Threadflip members (of which there are 1.5 million) to have access to “the best fashion discover experience available on the market today.”
Le Tote chief executive officer and cofounder Rakesh Tondon said that he was excited to welcome the Threadflip community to Le Tote. “This partnership allows us to bring more women than ever that ultimate level of customization and discovery to their online fashion experience. It is a huge opportunity for us to keep growing as a business and providing more resources for customers’ ever-changing life and fashion needs.”
On Jan. 14, Threadflip will close operations. Founded in 2011 by Jeff Shiau and Manik Singh, it has more than one million items listed on its site. According to Crunchbase, it has received at least $21 million in funding. It was not immediately clear what would happen to its employees; both companies are based in San Francisco.
Le Tote, which began in 2012, is often called “the Netflix of fashion.” It’s a monthly subscription service that lets users borrow three items of clothing and two accessories at a time for $59 a month and buy those they want to keep at up to 50 percent less than the retail price. It expanded into maternity in October 2015, and has received $27.5 million in funding. Brands available through the service include French Connection, Maison Scotch, Betsey Johnson, BB Dakota, Free People, Sam Edelman and Rebecca Minkoff. Le Tote did not share its employee or user numbers.
In a note to its users, Threadflip wrote that, “We started Threadflip five years ago with the vision of helping women refresh their wardrobes through a community of like-minded fashionistas. We have been humbled by the love of our community members who helped make Threadflip great.”
It continued, “After an amazing ride over the last five years, we have decided to cease operations at Threadflip and join fashion forces and partner with our friends at Le Tote. Through this partnership with Le Tote, our community can now have access to an exciting and exceptional fashion experience.”
In July, eBay acquired secondhand resale service Twice. According to a report from ThredUp, which itself received $81 million in funding in September, it’s estimated that venture capital firms invested more than $100 million in the online consignment industry in 2014. Although eBay maintains its predominance, other players include Poshmark — which recently expanded into retail — Tradesy, ThreadUp, TheRealReal and others.