AAA Rent the Runway fashions $60m series E

Rent the Runway fashions $60m series E

US-based fashion rental service Rent the Runway raised $60m on Tuesday in a series E round featuring media company Advance Publications.

Financial services group Fidelity Management and Research Company led the round, while existing investors Technology Crossover Ventures, Bain Capital Ventures and Highland Capital Partners also participated.

Rent the Runway operates an online platform that allows users to borrow designer clothing and accessories for a fee, either through subscription or a pay-as-you-go ‘a la carte’ service, which has 6 million members in the US.

The latest funding will be used to grow the company’s Unlimited subscription service, expand its retail outlets, which so far span branches in six cities, and scale its operational capacity.

Rent the Runway has now raised approximately $190m altogether, according to a press release announcing the round. The valuation was a “significant step up” from the $520m valuation at which it raised funding in late 2014, CEO Jennifer Hyman told Recode.

The 2014 series D round brought Rent the Runway $60m from Advance Publications, Technology Crossover Ventures, which led the round, Bain Capital Ventures and Highland Capital Partners.

Advance Publications led a $24.4m series C round for the company in 2013 that included Novel TMT Ventures, the investment arm of textile firm Novel Group, as well as payment services firm American Express, Kleiner Perkins Caufield & Byers, Bain Capital and Highland Capital Partners.

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