Fashion Sites Nomorerack, Rent the Runway Raise Funds

12/3/12Follow @cathyarnst

Christmas is coming early for two web-based fashion startups in New York, often referred to as the Target and the Netflix of online shopping. Nomorerack, the Target counterpart, is a discount e-commerce site that said on Friday it has raised $12 million in Series A financing, led by Giosis Gmarket, a large Asian e-market company based in Singapore.

On the same day, Rent the Runway—the Netflix-like site, which allows customers to rent clothes and accessories online—said it had received $20 million in new funds, in part from Advance Publications, parent company of Conde’ Nast.

Nomorerack was founded in 2010 in Vancouver with private funds and moved to New York six months ago. The site offers nine or more deals a day, with mark-downs that average 70 percent to 90 percent of retail list prices, and says in its press release that it has 5.8 million members and 7 million visitors a month—marking a growth rate of 200 percent in the last month.

Giosis Director Ifty Ahmed, who is also a partner at Oak Investment Partners, will join the Nomorerack board. The startup’s founder and CEO, Deepak Agarwal, said in a statement that Nomorerack was approached “by a number of venture capital firms,” but chose instead “strategic investors who have deep domain experience and can add the most value to our customers, with an emphasis on helping to source more high quality-low cost products.”

As for Rent the Runway, the three-year-old company previously raised $31 million. Those initial investors— Bain Capital Ventures, Highland Capital Partners, and Kleiner Perkins Caufield & Byers—are also part of the latest round of financing, while Conde’ Nast President Bob Sauerberg will join Rent the Runway’s board as part of this deal.

The site allows customers to rent designer clothes, shoes, and other accessories for four days at a time, at rates that typically equal 10 percent of the retail price. Rent the Runway says it has over 3 million members.

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  • Natalia Matthews

    Its a shame that @nomorerack stiffs their suppliers! I’ve been waiting for a check since…September of last year. I’ve emailed, called and even had my attorney send a demand letter. STILL have not been paid. I can’t get a REASON out of them because NO ONE will email or call me back.

  • Tom Chandler

    Nomorerack also stiffs their customers also by often supplying misadvertised items claiming massive savings which are false.. When a customer is confronted with a poor quality product, they are given major runaround that can only be resolved by their credit card bank.

  • Adrienne Carter and Dirk Mille

    Nomorerack will not help customers when they mess up on orders, you get the same automated response for the reply basically because not one of them can speak a lick of English. I recieved an order with my shipping and billing info on the package but with someone else’s order. I had the other persons name, order # for it was in the package and they still kept saying I recieved my order. $70 down the tubes. They also sell ‘NAME BRANDS” and I ordered a Liz Claiborne blouse saying it was regularly $50 and were selling it for $14 on thier site. Received it and on the tag at the neck was a black stripe through it. I have been around long enough to know that it was a second (reject) of the Liz Claiborne company for this is what they do when they will not sell an item because it does not meet the standards to put in a store. I called them and they kept telling me that there is even a stripped shirt under that reference number…stripped shirt??? Not what I said, they dont even understand English let along speak it. So I emailed them the problem, and they told me the company does this because of the incredible savings passed on the slash through the tag means “slashed prices” really??? This company sucks. Oh and if this doesn’t beat all, I spent from 11/8/13-11/21/13 for xmas over $1000 with them, then I started having all these problems. When mentioned I spent that and want help with getting the correct order, the reply from them through email, “It doesnt matter what you spemt with nomorerack for we treat all our customers the same”. Yeah like shit.