The company was profitable in 2016 on revenue north of $100 million.
In March, Rent the Runway CEO Jennifer Hyman told Recode, “I think you need to assume it’s impossible to raise equity financing for the next two years.” Just nine months later, Rent the Runway has closed a new $60 million equity investment led by the mutual fund company Fidelity with additional money from existing investors like Bain Capital Ventures and TCV. What changed in that time? The startup best known for its dress rental business put together a profitable year on an Ebitda basis while growing its revenue to well over $100 million.
Rent the Runway also launched a new product — a $139-a-month rental subscription for everyday workwear — that accounted for more than one-fifth of total company revenue in its first year.
Rent the Runway funding breakdown :
Dec, 2016 $60M / Series E
Dec, 2014 $60M / Series D
Mar, 2013 $24.4M / Series C
May, 2011 $15M / Series B
Feb, 2010 $15M / Series A