FILE PHOTO: The Rent The Runway store, an online subscription service for women to rent designer dress and accessory items, is seen in New York City, New York, U.S., September 12, 2019. REUTERS/Shannon Stapleton
July 19, 2021
(Reuters) – Rent the Runway has confidentially filed paperwork with U.S. regulators for an initial public offering (IPO), as it looks to cash in on the booming market for rental clothes and second-hand apparel.
The online clothing rental firm said on Monday the number of shares on offer and the target price range for its IPO had not yet been determined.
Founded in 2009, New York-based Rent the Runway allows customers to rent clothes and shop second-hand merchandise from over 750 designer brands.
It raised funds last year at a valuation of $750 million, below its previous valuation of $1 billion, Bloomberg News reported in June.
Demand for second-hand clothes has jumped in recent months as customers become increasingly conscious about their carbon footprint, boosting revenues at subscription-based styling service Stitch Fix and online resale shop ThredUp.
Denim maker Levi Strauss has also entered the used clothing market, while Etsy last month announced the acquisition of Gen Z-focused fashion resale firm Depop for $1.63 billion.
Online eyewear seller Warby Parker and Forever 21 owner Authentic Brands Group have also filed for IPOs this year.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Aditya Soni)