A little more than a year after re-launching, a local e-commerce startup is making its exit.
Dallas-based Rent My Wardrobe, an online marketplace for users to rent out their clothes and accessories, has been acquired by Wardrobe, a New York startup operating in a similar space and focused on luxury clothing and sustainability.
Financial terms of the deal were not disclosed. However, Rent My Wardrobe was recently valued at about $4 million, according to the company.
“Closet-sharing is a movement that’s larger than any one of us or any one city — women have always borrowed clothes and bags from each other,” said Adarsh Alphons, founder and CEO at Wardrobe, in a statement.
As part of the deal, Rent My Wardrobe Founder Rachel Sipperley will join Wardrobe as its new VP of brand and partnerships, where she’ll focus on customer acquisition and growth.
The move comes as New York-based Wardrobe has been experiencing its own growth. The company launched in 2018, landing a $1.5 million pre seed round the following year, with backers including founders from Airbnb, Vine and HQ Trivia. The company has also seen a four month streak of 100 percent month-over-month revenue growth.
With the acquisition, Rent My Wardrobe will fully merge with Wardrobe. Unlike Rent My Wardrobe, which has users coordinate the pickup and drop off of items and was difficult during the pandemic, Wardrobe has automated the process an included a logistics network that dry cleans each item after use.
Wardrobe said the acquisition will allow the company to expand its reach into the southern part of the U.S., where it has been seeing and increased amount of demand. The move will also bring over thousands of current Rent My Wardrobe users over to the Wardrobe platform, the company said.
Rent My Wardrobe was created in 2016, with a MVP launch in 2018 and an official launch last April. So far, the company has raised at least $1 million in seed funding from local entrepreneurial couple Court and Kameron Westcott, who were one of the families featured on Bravo TV’s “The Real Housewives of Dallas.”
“With Wardrobe’s nationwide shipping service and its technology, we can fulfill the promise we set out to achieve. I am thrilled to join forces and change the future of fashion together,” Sipperley said in a statement.
