Le Tote, the US-based operator of an on-demand fashion rental service, secured $15m yesterday in a series B round that included Simon Venture Group, property firm Simon’s corporate venturing arm.
The round, led by venture capital firm AITV, also included VC firms Lerer Hippeau Ventures, Azure Capital and Epic Ventures, and online investment marketplace Funders Club.
Founded in 2012, Le Tote provides a subscription service that allows customers to borrow unlimited clothing and accessories for a flat monthly fee, with the items delivers directly to their doors.
The capital will be used to scale company growth, expand Le Tote’s executive team and invest further in technology. Le Tote expects to achieve 500% year-on-year growth for the second year in a row in 2015.
Rakesh Tondon, chief executive of Le Tote, said: “We have been helping empower women and improving their lives by making fashion affordable and accessible to every woman in America everyday while also rethinking how people interact with their closets and the retail industry as a whole.
“We have built up a top-notch leadership team over the past year that is already helping us more effectively analyse and share data with brands and customers, and we are ready to do so much more with the continued support of our investors.
Le Tote has now raised $27.5m in funding altogether, having closed an $8.8m series A round backed by Simon Venture Group, Azure Capital, Lerer Hippeau, AITV, Epic Ventures, Funders Club, Arsenal Venture Partners and various angel investors in February this year.
Google Ventures, diversified conglomerate Alphabet’s corporate venturing unit, supported it at seed stage, alongside investors including Y Combinator, 500 Startups, Andreessen Horowitz and Lerer Hippeau.