Rent the Runway Inc. is New York’s most stylish unicorn.
The fashion rental startup is now valued at $1 billion, the company said Thursday as it announced its latest funding round.
Rent the Runway raised a fresh $125 million from investors co-led by Franklin Templeton Investments and Bain Capital Ventures. T. Rowe Price Group Inc. and Hamilton Lane Advisors joined as new investors.
Rent the Runway was started in 2009 by Jennifer Hyman and Jenny Fleiss as a way to rent designer dresses for events like weddings, galas and parties. The company has raised $337 million to date and each of its lead investors participated in the most recent round.
Over the past few years, the company has refocused its efforts on a subscription business, asking customers to pay a monthly fee for unlimited access to its catalog of clothing, accessories and more. Subscriptions were up 160 percent year-over-year last fall and winter, though the company declined to share the total number of subscribers.
“I have aspirations to create the Amazon Prime of rental,” Hyman, chief executive officer of Rent the Runway, said in an interview. “We want their subscription to be as seamless as going to the closet and getting dressed.”