Rent the Runway, the US-based fashion leasing platform that counts media group Advance Publications as an investor, has received $20m from investment vehicle Blue Pool Capital, Recode has reported.
The funding from Blue Pool, which invests on behalf of Jack Ma and Joe Tsai, co-founders of e-commerce firm Alibaba, was initially discovered by research firm Lagniappe Labs.
Founded in 2009, Rent the Runway offers a service allows customers to rent designer dresses and other high-end fashion items, giving them the choice of buying the clothing at a discount.
The company generally operates from an online platform but also runs a selection of brick-and-mortar stores where customers can view items.
Jennifer Hyman, Rent the Runway’s co-founder and CEO, told Recode: “I have huge respect for Joe and Jack and wanted to opportunistically involve them in the business as we embark on our biggest growth stage.
“Given the global aspirations that we have – especially in Asia – I thought they would be very good people to have around the table.”
The investment took Rent the Runway’s overall funding to about $210m, and Blue Pool invested at the $750m valuation at which the company closed its last round, a $60m series E backed by Advance Publications in late 2016.
Fidelity Management and Research Company led the series E round, which included Technology Crossover Ventures, Bain Capital Ventures and Highland Capital Partners.
The latter three had joined Advance for Rent the Runway’s $60m series D round in 2014, which in turn followed a $24.4m Advance-led series C round the year before.
Payment services provider American Express, Novel TMT Ventures, which invests on behalf of diversified holding company Novel Group, Bain Capital, Highland Capital Partners and Kleiner Perkins Caufield & Byers also took part in the 2013 round.