Fidelity Leads $60 Million Investment in Rent the Runway

NEW YORK — Rent the Runway, which lets women rent dresses online and in stores, has raised $60 million in a Series E round of funding led by Fidelity Management and Research Company, with participation from existing investors Technology Crossover Ventures, Bain Capital Ventures, Highland Capital Partners, and Advance Publications, Inc.

Total investment in the NYC company now stands at $190 million. This new round of funding will be used to accelerate the company’s growth as it continues scaling its a la carte and subscription rental products, retail stores and operational capacity.

The company opened its flagship store in NYC last month at 30 W. 15th Street (pictured above). Other stores are in Las Vegas, Chicago, Washington DC, San Francisco and Woodland Hills, CA.

“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. The first area is the company’s original a la carte rental product, which now boasts 6 million members throughout the U.S. The company will also focus on growing its Unlimited subscription business, which launched this spring and gives women access to $40,000 worth of designer clothing per year for a fixed monthly price.

Rent the Runway plans to continue expanding the company’s retail footprint which includes stores in six cities, including San Francisco, where the company recently opened a store within luxury department store Neiman Marcus. The company will also use the funding to continue building its operational capacity, which includes its world-class reverse logistics platform.