Rohit YadavThe prospectus for Rent the Runway’s upcoming first public offering has been made public.
Image: Wikiband
The online designer rental company said on Monday that it was planning an IPO to raise $100 million. The business did not say how many shares it would sell or what price range it would sell them in. This will be included in future filings. It will be listed on the Nasdaq under the ticker RENT.
The $100 million figure is simply a placeholder that will alter as additional information becomes available.
The aim of Rent the Runway, which was founded in 2009 by Jennifer Hyman, CEO and co-founder, is to “empower women to feel their best every day.” Members may rent used apparel from more than 750 designer labels through the New York startup’s cloud closet. They can return the things whenever they want and buy the clothes they desire, according to the prospectus.
There are several membership tiers available at Rent the Runway. Each month, basic closet access is $69 and includes four pieces of daily apparel and accessories. There are four different tiers of full closet access, with the cheapest starting at $99. Clothing for special events, work, and the weekend is available to members.
They may also rent fashionable apparel and accessories such as purses, scarves, and sunglasses. According to the prospectus, all of the clothing is washed before they arrive.
As of July 31, Rent the Runway has 126,841 total subscribers, up from 108,752 for the same period in 2020. For the year ending Jan. 31, losses increased to $171.1 million, up from $153.9 million for the same time in 2020. The company’s total sales fell roughly 39% to $157.5 million for the year ended Jan. 31 because to a decline in overall demand, mostly due to the Covid-19 epidemic.
The company’s revenue dropped to $157.5 million in 2019 from $256.9 million the previous year. In 2020, it had a net loss of $171.1 million, which was higher than the $153.9 million loss it had the year before. Rent the Runway lost $84.7 million in the six months ended July 31 on revenue of $80.2 million.
During the epidemic, Rent the Runway closed its current retail locations and revamped its membership options, including the elimination of an unlimited option. It also entered the resale market, where things may be purchased without requiring a membership.
Rent the Runway intends to expand globally and into other categories in the future to increase revenue. Rent the Runway lost its billion-dollar unicorn status in 2019 after it secured a round of investment last autumn at a $750 million value.
In July, Rent the Runway submitted a secret application for a public listing. The offering’s main underwriters are Goldman Sachs, Morgan Stanley, and Barclays.