Rent the Runway secures 200 million dollars in investment

Rent the Runway, the American clothing and accessories rental company, has announced a 200 million dollar credit facility in partnership with Temasek, an investment company from Singapore. Rent the Runway will use the funds to further boost its subscription service, which has grown 150 percent year-over-year and now accounts for half of the company’s total revenue.

“We’re thrilled to be working with a strategic and respected partner like Temasek as they have a long history of investing in successful entrepreneur-driven companies”, said Jennifer Hyman, Rent the Runway’s co-founder and CEO, in a statement.

To signal the long term partnership between the two companies, Temasek will now have an observer seat in Rent the Runway’s board of directors.

Founded in 2009, Rent the Runway features hundreds of thousands of clothing and accessories by more than 550 premium and luxury brands. Headquartered in New York City, the company employs a total of 1200 people. Rent the Runway’s subscription service allows customers to rent up to four items a month, for a monthly fee of 159 dollars.