Rent The Runway Nears New Funding
Rent the Runway CEO, Jennifer Hyman. Photo credit: Kevin Moloney/Fortune Brainstorm Tech, under Creative Commons license Fashion startup Rent the…
|Rent the Runway CEO, Jennifer Hyman.
Photo credit: Kevin Moloney/Fortune Brainstorm Tech, under Creative Commons license
Fashion startup Rent the Runway is close to raising at least $25 million in a new financing round led by T. Rowe Price, according to a report from Bloomberg. Bloomberg reports the new financing would, however, value Rent the Runway at about $750 million, down from a $1 billion valuation which the company clinched when it last raised funding. Rent the Runway is undoubtedly feeling the effects of a coronavirus pandemic that has led to revenue downturns for retail companies. The company, which offers clothing rentals primarily for women, has had to close all of its brick and mortar locations as governmental orders have barred non-essential businesses from opening in many U.S. states.
T. Rowe Price is already an investor in Rent the Runway, having participated in a last year $125 million financing round for the company. That financing round, in particular, was what shot Rent the Runway’s valuation to about $1 billion.
Altogether, Rent the Runway has raised about $541 million in funding since its inception.