In late July TMT Investments, a UK-headquartered venture fund backed by Russian businessmen, announced the completion of a $250,000 investment in San-Francisco-based fashion rental platform Le Tote.
Le Tote provides women with unlimited access to garments and accessories for a fixed price of $49 per month. The platform defines its mission as “to become the leading fashion discovery platform where women can access, learn about and shop the best fashion every day.”
The startup is addressing a very large market estimated at $240 billion for fashion retail and more than $65 billion for fashion e-commerce in the US. Le Tote believes it is in an excellent position to capture this market through its “Try before you buy” solution for women across the globe who want to look fashionable on a budget.
Le Tote was founded in 2012 by two serial entrepreneurs, Brett Northart and Rakesh Tondon.
“The ever changing nature of the Western fashion and cosmetics industries has led to a trend towards trial purchases, which are very popular amongst teenagers and young people. This group of consumers is the most progressive, as they do not have strong attachments to traditional brands and love to experiment. The team at Le Tote works with this demographic and shows great dynamism,” Rusbase quoted TMT Head of investments Artem Inyutin as saying.
TMT, which is traded on the AIM market of the London Stock Exchange, has raised $28 million since its inception in 2010. Its portfolio includes more than 30 startups from the USA, Russia and other countries.
Another very recent investment from TMT went to Quote Roller, a Californian startup developing business productivity SaaS products.