Reuters Rent the Runway is aiming for a valuation of nearly $1.3 billion in its first public offering in the U.S., as the fashion rental company looks to cash in on the rising interest in pre-owned clothing.
Rent the Runway, founded in 2009, lets users rent clothes and shop second-hand accessories such as handbags and jewelry from more than 750 designer brands in over 18,000 designs.
The company will sell 15 million shares priced between $18.00 & $21.00 apiece in its IPO, raising $315 million according to a filing.
Earlier in the month, the Brooklyn, New York-based company disclosed a near 39% fall in revenue for the fiscal year 2020.
The company's top line also took a hit in the first half of this fiscal year, with revenue at 9% for the period ended July 31.
Demand for second-hand clothes, however, has jumped in recent months as customers become increasingly aware of their carbon footprint, boosting revenues at styling service Stitch Fix and online resale shop ThredUp.