Some startups launch only to fail quietly. Others find a toehold in their chosen market and then proceed to raise boatload after boatload of money from investors. Rent the Runway, which just announced that it has raised another $60 million in funding, is one of the latter. This latest round — its fourth — brings the startup's backing to $116 million.
Rent the Runway has been building out its services in pretty cash-intensive ways recently. The startup opened its first brick-and-mortar store in Manhattan this September after setting up a shop-in-shop in Henri Bendel, then followed that up with another store in D.C. And we'd guess it's fairly costly to be in a near-constant state of adding, cleaning and retiring inventory.
According to a statement from Rent the Runway, the funding is going toward opening retail locations in 15 more markets and adding a West Coast distribution center, which would presumably speed up its operations for that portion of the country. Like Warby Parker and the men's e-tailer Bonobos, Rent the Runway is one of those online-native businesses that sees a lot to gain from establishing a strong real-world presence. Omnichannel isn't just for traditionally brick-and-mortar retailers.
The company's investors in this round include Technology Crossover Ventures (also a backer of Vice and Spotify), Bain Capital Ventures, Highland Capital Partners and Advance Publications Inc. (the parent company of Conde Nast).