Rent the Runway raises new round of funding amid expansion

Rent the Runway’s total investment keeps growing.



The dress rental business announced it has closed on a $60 million round of funding, led by Fidelity Management and Research Company with additional money from such existing investors as Bain Capital Ventures and Highland Capital Partners. Total investment in the company now stands at $190 million.



The new round of funding will be used to accelerate Rent the Runway’s growth as it continues scaling its online rental products, retail stores and operational capacity. The retailer recently opened its largest store to date, a flagship in Manhattan.



"We are coming off of our most successful year since the company's inception, with the launch of our Unlimited subscription business, our partnership with Neiman Marcus and our new flagship store in New York," said Jennifer Hyman, co-founder and CEO of Rent the Runway. "We are excited to bring on Fidelity as a partner as we continue to disrupt the closet and remain at the forefront of the access economy."



Rent the Runway plans to use the funding to scale in four key areas, with the first being its original on-demand rental product, which now boasts 6 million members throughout the United States. The company will also focus on growing its Unlimited subscription business, which launched this spring and gives women access to designer clothing for a fixed monthly price.



In addition, Rent the Runway will continue expanding its retail footprint which includes stores in six cities, including San Francisco, where it opened an in-store shop at Neiman Marcus. The company will also use the funding to continue building its operational capacity.