Rent the Runway reveals drop in revenue in new IPO filing
Online rental platform Rent the Runway has made its IPO filing public for a US stock market flotation, disclosing a 38% drop in revenue for the fiscal year 2020.
Launched in 2009, Rent the Runway was initially created by Jennifer Hyman and Jenny Fleiss to rent dresses for special occasions, but has since expanded to everyday womenswear.
The company's filing listed the size of the offering as $100 million, a placeholder value that will change when the share sale’s terms are officially released.
Rent the Runway struggled early in the COVID-19 pandemic, seeing its valuation drop from $1 billion to $750 million, cutting employee numbers and closing some locations.
Jennifer Hyman, Co-Founder and CEO of Rent the Runway, said: "In the years to come, we look forward to bringing the magic of Rent the Runway to more customers, and to any thing we don't need or want to own forever. Our flexible platform has the potential to power not just the Closet in the Cloud - but our lives in the cloud. This means more money saved and a more sustainable future for us all.
"I am incredibly honoured to lead our community into our next chapter as a public company, as we drive value for shareholders and continue to build a better future for fashion. While Rent the Runway has always been a disruptive force, our IPO will also trailblaze in the universe of public companies. We will become the first-ever IPO with a female CEO, CFO and COO - a distinction I am immensely proud of."