Egyptian online fashion rental platform La Reina has raised $1 million in a new Series-A funding round led by Algebra Ventures and 500 Startups.
Just in case you have never heard about it before, La Reina is one of the first entities in Egypt to have introduced the concept of renting designer clothes and accessories. The platform is based on a simple, yet practical premise — it enables women to rent bridal and evening gowns along with an accessory of their choice.
This allows the fashion connoisseurs in the country to diversify their wardrobes without having to spill out tons of money in the name of ownership of new outfits that they may not even wear anytime soon.
La Reina claims to have garnered nearly $200,000 for dress owners to date.
Appreciating the company’s innovative outlook toward transforming the Egyptian fashion industry, 500 Startups’ partner Sharif El-Badawi said that the global VC firm had had La Reina on its radar for a long time now.
“Not only have we seen similar ideas succeed in the US where the pain point is arguably lower than a place like Egypt (where every week seems to have a formal event with strong social pressures requiring women to dress-to-impress), we were delighted to see how La Reina adapted their strategy and business model around the local nuances and needs on both sides of the marketplace,” he added.
La Reina says it wants to utilize the new fund in expanding its workforce and wardrobe. The company, according to Co-Founder Ghada El-Tanawy, plans on expanding its closet to reach 5,000 items by January 2019.
“This would not only mean a revenue worth of EGP 8m ($452,565) for the dress owners, but also a humble boost for the local economy and a starting point for a transformative business model,” said El-Tanawy.