YCloset, also known as Yi23.net, said it has raised $50 million in third round funding from an investment group made up of Alibaba Group, SB China Capital and Sequoia Capital.
Launching two years ago, the clothing-sharing e-commerce firm rents clothes to customers, providing free shipping and cleaning duties, on a subscription-based arrangement.
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For instance, a customer pays a monthly fee to change an unlimited number of items during that period.
The average price of the apparel brands working with YCloset is around 1,500 yuan.
The Beijing-based firm has put the new funds into improving its online system and operations, according to China Daily.
Since launching in 2015, YCloset has also joined forces with Fornet China, the country’s leading cleaning company, to provide washing and maintenance services to clients. A new storage facility in Shanghai, launched on 1 September 2017, plans to hasten the delivery time to within one or two days after ordering.
“Customers don’t want to wait for too long to get the clothes they like,” Ke, the firm’s marketing director told reporters.
YCloset boasts 5 million customers. More than 70 per cent of their consumers are aged 22 to 35 years old and young professional who have worked for one to five years.
Most live in first-and second-tier cities with incomes of 8,000 yuan to 20,000 yuan, said Ke.