Le Tote, fashion rental service known to be Netflix for clothes has announced it raising more than $15 million in one round of Series B funding led by AITV along with the participation of existing investors Lerer Hippeau Ventures, Azure Capital, Simon Venture Group, Epic Ventures and Funders Club.
Founded in 2012 and based in San Francisco, Le Tote was designed as a data-driven fashion subscription service that offers on-demand boxes of apparel and accessories to customers for a flat monthly fee of $49 per month. The company claims to be on track to deliver over two million items to customers and boost revenue 500% year-over-year.
Rakesh Tondon, CEO and co-founder of Le Tote said, “We have been helping empower women and improving their lives by making fashion affordable and accessible to every women in America everyday while also rethinking how people interact with their closets and the retail industry as a whole. He also added,” We’ve built up a top-notch leadership team over the past year that is already helping us more effectively analyze and share data with brands and customers, and we’re ready to do so much more with the continued support of our investors.”
With the fresh funds, Le Tote plans to strengthen its executive team, expand wider technologically and help Le Tote scale altogether. It team currently consists over 80% women employees.
Bill Malloy, General Partner at AITV and Le Tote board member said, “We’ve watched Le Tote fuel its growth by innovating quickly based on data and customer feedback, and we couldn’t be more pleased to continue our investment in the company, technology and team.” He further added, “More than ever, customers are demanding instant gratification from the brands they interact with, and Le Tote has been able to rise to the occasion with product enhancements like the ability to customize shipments ahead of delivery and the introduction of its mobile app, which is the best way to use the service on the go.”
Around a year ago, Le Tote slightly moved away from its original Netflix model when the company started allowing its shoppers purchase and keep items they received. Purchases now make up a significant portion of the company’s revenue.