Rent the Runway, an online clothing retailer that rents designer clothing on a monthly basis has filed for an IPO with the Securities and Exchange Commission.
Rent the Runway has launched an online second-hand retail sales market in addition to its rental division and plans to expand internationally.
“We couldn’t have foreseen the global pandemic and the resulting fight for our survival...Today, Rent the Runway has emerged stronger," Co-founder and CEO Jenn Hyman said in a memo included in the SEC filing.
Though revenue fell to $157.5 million last year, from $256.9 million in 2019, total subscribers in the six months ended July 31, were 126,841 compared with 108,752 in the same six-month period in 2020.
With Goldman Sachs and Barclays as lead underwriters for its IPO, and the success of recent IPOs Warby Parker (WRBY) - Get Warby Parker Report and Poshmark (POSH) - Get Poshmark Report, the company will list on the Nasdaq under the ticker symbol 'RENT' selling around 15 million shares, priced between $18 and $21.
Rent the Runway plans to raise $315 million with the IPO, bringing the company's valuation up to around $1.3 billion.