Alibaba CEO invests 20 million dollars in Rent the Runway
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An Alibaba affiliate has invested US$21 million in online fashion rental service Rent the Runway.
Rent the Runway CEO Jennifer Hyman says that over time the company has built a great relationship with the team at Blue Pool Capital, an asset-management firm established by Alibaba founders Jack Ma and Joe Tsai.
The funding values Rent the Runway at nearly $800 million. In December 2016, it closed a $60 million series-E funding round led by Fidelity Management and Research Company.
“Launched in 2009, Rent the Runway seemed to struggle a few years ago amid the complex logistics as a renter of high- to mid-fashion apparel,”
As the company evolved, it has also tested the limits of its own revolutionary premise – that people will begin to think of their wardrobes as existing ‘in the cloud’, making them virtually infinite.
“It is a step beyond the original concept of renting special-occasion dresses and shoes – the Cinderella approach – to renting casual wear and office wear on a routine basis.”
The stance is a direct challenge to fast fashion, which relies on inexpensive ownership and a closet’s high turnover.
Questions & Answers
Q.Which specific Alibaba entity made the investment in Rent the Runway?
Which specific Alibaba entity made the investment in Rent the Runway?
The investment came from an Alibaba affiliate. Rent the Runway's CEO Jennifer Hyman mentioned building a relationship with Blue Pool Capital, an asset-management firm founded by Alibaba founders Jack Ma and Joe Tsai.
Q.What is the valuation of Rent the Runway after this latest funding round?
What is the valuation of Rent the Runway after this latest funding round?
Following this investment from the Alibaba affiliate, Rent the Runway is now valued at nearly $800 million. This new funding contributes to the company's overall valuation.
Q.How has Rent the Runway's business model changed since its inception?
How has Rent the Runway's business model changed since its inception?
Initially, Rent the Runway focused on 'special-occasion dresses and shoes'. It has since evolved to offer 'casual wear and office wear on a routine basis', moving towards the concept of a 'cloud' wardrobe.
Q.When did Rent the Runway last secure a significant funding round before this current investment?
When did Rent the Runway last secure a significant funding round before this current investment?
Rent the Runway previously closed a substantial $60 million Series E funding round in December 2016. This round was led by Fidelity Management and Research Company, boosting its financial position then.
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