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Online Fashion Giant, Rent the Runway, Confidentially Files IPO
Rent the Runway is announcing its confidential IPO listing on the Securities and Exchange Commission (SEC).
The fashion disrupter is yet to disclose the number of shares or the prices of its IPO, nor did it set a date for the IPO; however, its press release indicates that it will be released once the SEC has approved the filing.
Rent the Runway was founded in 2009 and allows users to subscribe, rent and shop resale online from a wide range of designer, pre-loved and vintage pieces from more than 750 brands.
This move comes as the online fashion rental industry continues to boom. In the last 18 months, a handful of fashion retailers have filed for IPOs, entered international waters and piqued the interest from large investors. The fashion rental market is now estimated to reach a valuation of $2.08 billion by 2025.
While many retailers have jumped on the rental bandwagon in the last 18 months, Rent the Runways trajectory hasn’t been so smooth. In 2019, the retailer was caught in a scuffle due to an operations issue, resulting in customers not receiving orders, massive delays and customer service ‘breakdown’.
This issue was resolved, and during the pandemic, the retailer began offering vintage and pre-loved items for sale without the need for a membership.
“We have all been staring at closets full of clothes that went unworn for the past year, which has created a paradigm shift in how consumers are thinking about shopping and getting dressed,” explained Jennifer Hyman, the Co-Founder and CEO of Rent the Runway. “Resale is a natural complement to renting, and a logical next step as we continue to expand Rent the Runway’s value proposition.”
Power Retail has been covering the increasing interest in resale and the re-commerce market, as retailers like Vestiaire Collective, The RealReal and Poshmark dominating the scene month-on-month. Even Etsy jumped on board, acquiring the Gen Z loved platform, Depop, for $1.6 billion this year to attract a younger shopper audience.
The next-gen shoppers, namely Gen Z, are big fans of the resale market, so this move by Rent the Runway doesn’t come as a surprise. More details of the IPO will be released as the SEC complete their filing and review for Rent the Runway.