Rent The Runway Valued At $1B After Funding Round

In a round that brought in a $1 billion valuation for the company, clothing subscription service Rent the Runway notched $125 million in funding. Bain Capital Ventures and Franklin Templeton Investments led the investment, according to reports.

Rent the Runway CEO Jennifer Hyman said in an announcement, according to reports, “Shared, dynamic ownership is a movement that Rent the Runway has pioneered over the last decade and we’re excited to continue to lead the market and innovate our subscription service.”

The company reportedly plans to broaden its offerings, open more fulfillment centers and scale its business for subscriptions. As it stands, the company opened a brick-and-mortar location in September of last year and now has three offerings after growing from offering one-time rentals. While other companies such as Stitch Fix have come on the scene, Rent the Runway COO Maureen Sullivan said per reports that “they’re trying to get you to buy stuff.”

The news comes as Rent the Runway is teaming up with West Elm to help consumers rent home goods like throw pillows, linens and blankets. Through the tie-up, shoppers will be able to rent some items through the company’s website starting in the summer. Hyman said per reports, “We see home goods as similar to your closet, where there are investment pieces along with design-based seasonal changes you are always wanting.” Hyman continued, “I think that the customer today wants flexibility to decide when to invest and when to play.”

Consumers can select from 26 bundles for the bedroom and/or the living room through the offering. The companies said in an announcement that members could keep the items for as long as they like – weeks to months “and beyond.” At the same time, Rent The Runway will let subscribers buy a bundle at a price that is discounted. The company also recently rolled out exclusive new clothing lines created by designers Derek Lam, Prabal Gurung, and Jason Wu.