in March of this year, Rent the Runway CEO Hyman Jennifer also said: in the next two years, want to complete the equity financing is unlikely."
but nine months later, Rent the Runway has successfully completed a new round of $60 million E round of financing, led by the mutual fund company Fidelity investment, the original investor Bain Capital Ventures and TCV.
so what happened during that time,
this is the main business in the clothing rental, tax interest rate depreciation and amortization of pre – profit calculation, the annual income of more than $100 million.
At the same time
, Rent the Runway also launched a monthly fee of $139 a clothing rental subscription service, in the first year of the new products for the company to bring revenue 1/5.
Hyman said in an e-mail: "given the difficult market environment of the past year, I hope the company is in a sustainable financial environment to avoid the impact of external economic fluctuations. Facts have proved that we have done, we have a solid financial foundation withstood the test of the market."
Hyman said that the company will use the new funds to help the business to achieve faster development, but the best marketing investment is lower than now, under the control of 4% of total revenue.
‘s deal suggests that investors and fast-growing start-ups are now focusing on profitability. Just this week, there are news reports Fidelity investment in the electricity supplier Blue Apron has publicly listed plans, which are focused on the appliance business to improve operating profit.
in addition to the above two companies, Fidelity has also invested in the shared economy on behalf of Uber and Airbnb.
Rent Runway completed a $60 million round of financing in 2014, when the valuation of $520 million in. The new round of financing is an important milestone for the company since then. On the new valuation, Hyman refused to disclose specific information.
Rent the Runway by Hyman and Jennifer Fleiss two co founded in 2009, aims to provide an important occasion for women’s well-known designer clothing rental services, such as wedding dress, so as to avoid huadaijiaqian buy these will only wear a dress.
in March this year, the company launched the monthly fee of $139 subscription service Unlimited, which is in the 20 month trial and after the failure of wisdom. The user can lease three pieces of clothing and jewelry using this service, not only free shipping, can not limit the number of replacement.