Total amount raised
$626.1 Million
Latest funding date
10/1/2020
Location
Rent the Runway has successfully raised funding over 18 rounds, with the latest being a Post-IPO Equity round. The company is backed by 24 investors, including Aranda Principal Strategies and Nexus Capital Management.
Keep reading to explore the intricacies of Rent the Runway's fundraising journey and the investors backing this innovative platform.
What Is Rent the Runway?
Rent the Runway is an innovative online e-commerce platform that allows women to rent designer apparel and accessories. Founded in New York, the company operates in the apparel, consumer goods, e-commerce, fashion, and retail industries. It employs between 501 and 1000 people.
The company offers a subscription service for designer clothing rentals, providing a flexible and cost-effective way to access high-quality fashion. Rent the Runway emphasizes convenience, variety, and sustainability, making it a popular choice for those looking to refresh their wardrobe without the commitment of purchasing.
How Much Funding Has Rent the Runway Raised?
- Round Name: Series Unknown
- Amount Raised: USD 5,000,000
- Date: June 2020
- Lead Investors: SuRo Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and market expansion.
- Round Name: Series G
- Amount Raised: USD 100,000,000
- Date: October 2020
- Lead Investors: Ares Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance product offerings and expand market presence.
- Round Name: Debt Financing
- Date: October 2020
- Lead Investors: Ares Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To secure additional capital for operational needs.
- Round Name: Series F
- Amount Raised: USD 125,000,000
- Date: March 2019
- Lead Investors: Bain Capital Ventures, Franklin Templeton
- Valuation at Round: USD 1,000,000,000
- Motivation Behind the Round: To scale the subscription business and broaden product offerings.
- Round Name: Debt Financing
- Amount Raised: USD 200,000,000
- Date: August 2018
- Lead Investors: Temasek Holdings
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's financial stability and growth.
- Round Name: Series Unknown
- Amount Raised: USD 20,000,000
- Date: March 2018
- Lead Investors: Blue Pool Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market presence and enhance product offerings.
- Round Name: Secondary Market
- Date: April 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity for early investors and employees.
- Round Name: Secondary Market
- Date: September 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity for early investors and employees.
- Round Name: Post-IPO Equity
- Amount Raised: USD 20,000,000
- Date: August 2025
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing growth and expansion efforts.
- Round Name: Post-IPO Equity
- Amount Raised: USD 12,500,000
- Date: October 2025
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further enhance the company's market position and product offerings.
Total Amount Raised: USD 507,500,000. Current Valuation: USD 1,000,000,000.
Key Investors
- Franklin Templeton Investments
- Details: Franklin Templeton is a global investment firm that offers mutual funds, retirement solutions, and other investment products. They led the $125 million funding round that contributed to Rent the Runway's $1 billion valuation.
- Investment Focus Areas: Technology, healthcare, financial services
- Notable Investments: Not publicly disclosed
- Bain Capital Ventures
- Details: Bain Capital Ventures is a venture capital firm that invests in early to growth-stage companies across various sectors. They co-led the $125 million funding round for Rent the Runway.
- Investment Focus Areas: Technology, healthcare, consumer products
- Notable Investments: LinkedIn, DocuSign, SurveyMonkey
- Ares Management
- Details: Ares Management is a global alternative investment manager. They led the $100 million Series G funding round for Rent the Runway.
- Investment Focus Areas: Credit, private equity, real estate
- Notable Investments: Not publicly disclosed
- Temasek Holdings
- Details: Temasek Holdings is a Singaporean investment company. They led the $200 million debt financing round for Rent the Runway.
- Investment Focus Areas: Financial services, telecommunications, media
- Notable Investments: Not publicly disclosed
- SuRo Capital
- Details: SuRo Capital is a publicly traded investment fund. They led the $5 million Series Unknown funding round for Rent the Runway.
- Investment Focus Areas: Technology, education, financial services
- Notable Investments: Not publicly disclosed
What's Next for Rent the Runway?
Rent the Runway stands on the brink of significant growth, with ambitions to become the "Amazon Prime of rental." The company aims to scale its subscription services, expand into home decor, and open more physical retail locations. These opportunities, backed by a $1 billion valuation, signal a robust market potential.
Future fundraising seems promising, given the recent successful rounds. Investors are likely to continue supporting Rent the Runway's expansion plans, which include enhancing fulfillment capabilities and broadening product offerings. However, challenges such as competition from other fashion services and managing logistics for physical stores could pose hurdles.
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