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Rent The Runway Nears End Of Series D Round, Valuation Could Top $600 Million

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Rent The Runway CEO Jennifer Hyman has spent the fall running around to raise a Series D for her fashion rental business.

The roadshow is done, and term sheets should stream in this week. While nothing is official, a source inside the company says they have heard numbers from various investors that would value the company between $400 million and $600 million. The top range would represent a 70% jump in value since the company raised $24 million at $250 million valuation in 2012.

Rent the Runway is as much about logistics and data science as it is about fashion. The operation is daunting. Each day Rent the Runway juggles more than 65,000 dresses and 25,000 accessories as they move across the country among its 5 million members. Sixty percent of the dresses fly back out the door the same day they arrive at HQ.

For the roadshow, Rent The Runway gave potential investors full access to their Secaucus NJ warehouse where the cleaning, mending and shipping gets done. They also provided more than 160 data points about how the business is going.

That includes revenue--which a company source said will top $50 million in 2014. Rent The Runway is projecting it to double to $100 million by the end of 2015.

Hyman has said that dresses were always just a test case--that her dream was to build the Amazon of rental. Taking a step closer to this goal, in July the company launched a subscription model that let you rent up to three accessories (to keep for as long as you wanted) for $75 a month. Launched in beta, the service--dubbed Unlimited--has more than 40,000 people on the waiting list--far surpassing their estimates. Rent the Runway had previously modeled that Unlimited would bring in about $15 million of next years $100 million worth of sales. With that kind of waiting list, 2015 revenue projections might end up looking low.

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