Pan-Lin Asset Management Co., Ltd., a Shanghai-based RMB-denominated private equity firm, has led a US$20 million series B round in YCloset, a Beijing-based online women clothing rental platform and mobile app.
A number of investors including IDG Capital, Zhen Fund, and GSR Ventures, also participated in the round.
Founded in 2015, Ycloset let users to rent clothing, dresses and accessories for free by paying a monthly membership fee of RMB499 (US$72.3). It currently operates in around 40 cities in China including Beijing, Shanghai, Guangzhou and Shenzhen, and has partnered with over a hundred fashion brands.
The company previously raised a series A+ round worth tens of millions U.S. dollars led by IDG Capital last April. In 2015, it received several millions U.S. dollars from GSR Ventures.
YCloset plans to use the latest proceeds to enhance its cooperation with dozens of entry level luxury brands, and expand its business in the sector.
A couple of similar start-ups have recently raised funding as well. Ms Paris, which focus on luxury dresses rental, raised a US$18 million series A round led by Northern Light Venture Capital last month.
Another platform, Dora's Dream, which provides daily clothes for women in tier-two and tier-three cities, completed a US$12 million series A+ round led by Legend Capital earlier this month.