Rent the Runway co-founders Jeniffer Hyman and Jennifer Weiss

  image credit : Rent the Runway

NY headquartered online fashion subscription retailer Rent the Runway has now inked a $200 million credit facility deal with Singaporean national wealth fund and major investor Temasek Holdings taking on extra funding to drive its subscription growth expanding its logistics operations and also refinancing its previous debt facility.

The 9 year old e-commerce company started by Harvard Business School mates Jennifer Hyman and Jennifer Fleiss has grown rapidly since then with its service becoming a major go to for various fashion enthusiasts which gain access to a vast collection of designer clothes for a fraction of the original cost while providing flexible style options for them also.

Rent the Runway has raised over $200 million in equity financing since its inception counting notable backers including KPCB, Bain Capital, Alibaba’s Jack Ma, Condé Nast and American Express who have all invested a total of $216 million into the company which makes annual revenues north of $100 million across several rounds.

“We’re thrilled to be working with a strategic and respected partner like Temasek as they have a long history of investing in successful entrepreneur-driven companies to help advance their mission of disrupting industries” said current CEO Jennifer Hyman. “As the consumer landscape has changed dramatically, we have normalized the behavior of clothing rental, and access to these funds enables us to accelerate our vision of putting the closet in the cloud for every woman.”

RTR was reported to be valued at nearly $800 million from its most previous funding round from Alibaba executives Jack Ma and Joseph Tsai’s Blue Pool Capital. This funding round being a debt facility very likely doesn’t affect its valuation and shareholding dilution as Rent the Runway aims to expand its service more rapidly gaining access to a much more larger load of capital with a credit facility round with major startup and technology investor Temasek.

In the space of just two months, Temasek has participated in 11 VC deals consisting of notable ones with Ant Financial, Flywire, UST Global and WeWork China which saw the stated companies raise a total of $14.85 Billion between them with Ant Financial’s record $14 Billion round making up the majority of the funding raised in the rounds which Temasek participated in.

Rent the Runway counts over 1,200 employees as of current with its employees consisting of 70% female and 71% minority indicating a very diverse workforce which has earned the Greater New York Area based startup honors of being one of the best places to work in the city of New York with a recognition even coming from the state’s Society for Human Resource Management.

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