Rent the Runway files for IPO as clothing rental industry takes off

Rent the Runway has filed paperwork with US regulators for an upcoming initial public offering (IPO) as the clothing rental industry booms.

The clothing company has not divulged the number of shares on offer or the estimated price range as of yet.

Rent the Runway was founded in 2009 and allows its users to rent clothes as well as browse second-hand or vintage products from over 750 designer brands, including Jason Wu dresses, Ulla Johnson jumpsuits, Tory Burch handbags and Madewell jeans.

The company allows users to choose a one-time rental that lasts for either four or eight days with memberships starting at $69.

READ MORE: Etsy to buy Depop for $1.6bn in its largest expansion effort to date

Bloomberg reported last year that the company was valued at $750 million after a funding round while demand for clothing rental rises.

Shoppers’ increasing awareness of their carbon footprints and their concerns for the climate has fuelled the industry which has also had a knock on effect on subscription-based styling services such as ThredUp and Stitch Fix.

Levi Strauss has also looked to cash in on market gains in the pre-owned clothing market.

Handmade gift platform Etsy last month announced it was acquiring fashion resale from Depop for over $1.6 billion.

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