Rent the Runway, a dress rental service, has raised $60 million in a series D round of new venture funding. The company has now raised a total of $116 million. Technology Crossover Ventures led the round, with participation from Bain Capital Ventures, Highland Capital Partners, and Advance Publications.
The company will use the new funding to open retail outlets in 15 markets and develop a distribution center on the West Coast.
In October, Fortune reported that the company was seeking to raise $50 million. Rent the Runway's last round of funding valued it at $220 million (excluding cash from the investment). Rent the Runway is not profitable. The company launched a subscription business earlier this year to rent everyday wear to its five million customers.
From the October report:
Founded in 2009, the New York-based company is planning to generate $48 million in revenue this year and projects $80 million next year, according to investors who have seen Rent the Runway’s financials. (A separate person close to the company says revenue is projected to top $100 million next year.)
In 2013, Rent the Runway generated $28 million, which was 25% lower than internal projections, and lost $14.5 million. In 2012, the company brought in $17.8 million and lost $12.3 million. In 2011, it brought in $10.9 million and lost $5 million.