Fashion Firm Rent the Runway Aims for Nearly $1.3 Billion Valuation in US IPO

Fashion Firm Rent the Runway Aims for Nearly $1.3 Billion Valuation in US IPO

FILE PHOTO: A woman looks at clothes at the Rent The Runway store, an online subscription service for women to rent designer dress in NY city - Reuters

Rent the Runway is aiming for a valuation of nearly $1.3 billion in its US initial public offering, as the fashion rental company looks to cash in on the rising interest in pre-owned clothing.

The company, founded in 2009, lets users rent and shop second-hand clothes and accessories such as handbags and jewelry in over 18,000 styles from more than 750 designer brands. It also allows customers to rent and shop home goods.

Rent the Runway plans to sell 15 million shares priced between $18.00 and $21.00 apiece in its IPO, raising $315 million, according to a filing here, Reuters reported.

Earlier this month, the Brooklyn, New York-based company disclosed a near 39% drop in revenue for the fiscal year 2020. Its top line also took a hit in the first half of this fiscal year, with revenue down 9% for the period ended July 31.

Rent the Runway said its active subscribers more than doubled to 111,732 in the first nine months of 2021.

Demand for second-hand clothes has jumped in recent months as customers become increasingly