Popular fashion rental service company Rent the Runway has confidentially filed for a U.S. initial public offering. With the growth in the clothing rental market, the company thought it an ideal time to try and go public. The number of shares and target price range has not been determined. The news was reported by Reuters.
The New York-based company, which celebrates its twelfth anniversary this year, started off as a clothing rental company, but also got into the secondhand market, selling merchandise from over 750 high fashion brands. Last year after a round of funding the company brought its valuation to 750 million dollars, which was below its prior valuation of 1 billion dollars.
The secondhand market is continuing to grow as customers are trying to shop more sustainably feeling less of a need for clothes that are “new.” Secondhand companies, like ThredUp, TheRealReal, and Depop, have seen plenty of growth over the past several years.