Rent the Runway is expected to launch a funding round valuing the company at $250 million below its pre-coronavirus valuation as it tries to keep its head above water.
The fashion start-up is understood to be seeking $25 million in new funding, led by T.Rowe Price Group, which would value the company at just $750 million, according to Business of Fashion.
This is significantly below its pre-coronavirus valuation of $1 billion and suggests that Rent the Runway, like countless other fashion start-ups, is scrambling to sure up its finances in the face of dramatically reduced trading during lockdown.
It comes as the company revealed the departure of its chief technology officer Josh Builder, who will leave the company at the end of May to join a healthcare technology firm.
This topped off a turbulent few months for the company’s leadership, seeing its president and former chief operations officer Maureen Sullivan leave in March after nearly five years.
In the past six months, three C-level executives including its general council, chief supply chain officer and chief brand officer were newly appointed.
Rent the Runway declined to comment on plans to raise additional funds, and it is understood that said plans are not yet final and may still not happen.