Tracing back Alibaba?s investment portfolio, it first invested in Y-closet in 2017 whose business model is very similar to Rent the Runway, but adapts to young Chinese consumers? shopping habit. Photo:VCG
A recent deal reignited interest in the luxury sharing economy in China.
Women?s clothing rental business Rent the Runway recently secured $20 million from Alibaba founders Jack Ma and Joe Tsai via Blue Pool Capital. Although Rent the Runway is already profitable, its co-founder and CEO Jennifer Hymann sees the investment as an opportunity to ramp up growth, targeting Asia next.
Founded in 2009, Rent the Runway allows women to rent designer dresses at a low percentage of the retail purchase price. The company has since introduced a subscription model that lets women rent clothing for everyday wear. It has attracted many investors, securing $60 million in Series E investment led by Fidelity, with additional funds from existing investors like Bain Capital Ventures and TCV. Blue Pool Capital is the company?s first investment in Rent the Runway to come from China. Does Jack Ma?s interest in Rent the Runway signal a coming partnership with Alibaba, or even an acquisition" Hyman has not given a definite answer. According to Recode, Blue Capital will simply send an executive to act as an observer on the board of Rent the Runway. This doesn?t preclude the possibility of Alibaba learning from Rent the Runway?s nine years of experience to help find its own way of participatin...