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High profile Rent-the-Runway IPOs. Is it the pin-up for Do Good capitalism?

Rent-the-Runway subscribers can browse luxury fashion online and rent attire. Its accessories, handbags and jewellery come from over 750 designer brands. 

The business meets a consumer need of wanting ‘new’ styles and since the goods are returned after a month, is arguably more responsible environmentally.

The company was founded in 2008 and has around 120,000 regular subscribers each paying between $89-199 a month. 

Last week the company IPO-ed on the Nasdaq at a jaw dropping $1.7b valuation. 2020 revenue was $157m.

Photo: Social Media Week

Note Rent the Runway is not profitable, and during the pandemic even laid-off staff as subscribers dropped, a trend that has since reversed.

Rent the Runway is not the only game in town, others include Nordstrom Trunk club and Haberdash.

The company is an example of Do-Gooder capitalism, a trend that is becoming more and more prevalent. 

Do Good brands need to watch out though. One commentator on the WSJ noted wryly.

A company who says it’s not about the money as they are launching an IPO on the NasDaq?  It’s ABSOLUTELY about the money.

WSJ comments section
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