Fashion firm Rent the Runway struts into Wall Street with $1.7 billion valuationStyle organization Rent the Runway was on Wednesday valued at $1.7 billion right after its shares opened approximately 10% earlier mentioned their preliminary public featuring price, the hottest customer-experiencing business to ace its marketplace debut in the United States.

The firm’s site allows ladies to lease and shop secondhand apparel and components these kinds of as handbags and jewelry from a lot more than 750 designer models.

People aware of lessening apparel and environmental waste have driven up demand for secondhand outfits and rental services, although hybrid-operating has eliminated the require to refresh wardrobes for business-heading people.

Higher need for its attire rental model has assisted the firm cut its internet loss to $84.7 million in the six months finished July 31, from $88 million a calendar year earlier.

“Women of all ages didn’t have to return to the place of work in order to return to Rent the Runway,” Co-founder and Main Govt Jennifer Hyman said in an job interview with Reuters.

Variations to subscription strategies to make them a lot more individualized has also led to larger loyalty and margins, Hyman stated.

Started in 2009, Hire the Runway is backed by affiliates of Bain Capital Ventures and Ares Management Corp. Oscar-winning actress Gwyneth Paltrow is on its board and the organization has also set up a panel to oversee its ESG strategy.

In the modern months amid a surge in shopper demand, various purchaser-going through companies together with eyewear business Warby Parker and Roger Federer-backed shoemaker On Keeping AG have had robust marketplace debuts.

Shares of Brooklyn, New York-based mostly Hire the Runway opened at $23, up from its IPO selling price of $21 just about every. It bought 17 million shares to elevate $357 million in its upsized share sale, which was priced at the major end of its preliminary selection of $18 to $21.

Goldman Sachs & Co, Morgan Stanley and Barclays Funds are the lead underwriters.