Loanhood ♻️

can your shirt have nine lives?

March 07, 2023

setting the scene

  • tired of cycling through the same five shirts, you go on a shopping spree

  • here’s the process:

    • buy new items and break the bank 🛍

    • make space in your closet by shoving clothes into your kitchen pantry

    • enjoy your new items for a few months

    • repeat 🔁

  • what if you could make money off your clothes collecting dust and affordably keep up with the current trends?

  • this week’s company provides a circular fashion destination that enables consumers to lend and rent clothes to refresh their wardrobes

Logo

in a sentence

Loanhood is a mobile peer-to-peer marketplace that enables users to list their clothes and rent from other users and emerging brands

  • marketplace: lenders post items for renters to explore through a social feed

  • rent: lenders ship clothing directly to the renter, and the renter sends the item back at the end of the rental period

  • emerging brands: Loanhood works with independent designers to list and rent out their items

bulleted version: similar to how Airbnb enables hosts to list their homes and guests to rent properties, Loanhood enables lenders to list clothes from their closet and shoppers to rent items 🏠

the basics

  • industry: retail, e-commerce, p2p marketplace 

  • headquarters: London, UK 🇬🇧

  • year founded: 2022

  • company size: <5 employees

  • investors: Mark Perera, Alex Martinez, Susanna Kempe

  • amount raised: £250k

  • business model: marketplace transaction fees, b2b partnerships

  • early traction: 4k users growing 40% each quarter, 80+ emerging designers, 50+ events with key partners

Loanhood Product Image

sponsored by

  • Mercury is flipping the script on business banking

  • despite being an instrumental pillar of starting and scaling a company, traditional banking has never catered to founders’ unique needs

  • that’s why Mercury’s founders decided to create a new standard for business banking with a platform that fuels founders and their finance teams with exactly what they need (and nothing they don’t)

  • manage FDIC-insured accounts, send money seamlessly, grow with alternative financing, and more - all online, all with confidence

  • try their demo to see why more than 100k startups across industries, stages, business types choose Mercury to help them build the next great companies

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®️; Members FDIC.

due diligence

what we like

  • 👣 fashion footprint: the sizable secondhand apparel market is projected to double in the next four years, outpacing new apparel sales

  • 🏁 next-gen focus: Loanhood’s platform caters to Gen Z’s desires to shop with social responsibility, keep up with fast-changing fashion trends without breaking the bank, and bring in additional income

  • 🤝 key partnerships: by elevating emerging designers and bringing brand experiences IRL, Loanhood builds awareness, fosters community, and diversifies revenue streams

potential risks

  • 📦 logistics: the company must build trust with users to successfully coordinate shipping, maintain clothing quality, and abide by terms of service

  • 🛍 behavior shift: while the concept of circular fashion has gained traction in recent years, Loanhood is betting that consumers are willing to rent out individual clothing items at scale

  • ⏪ previous attempts: several startups have attempted a similar model but failed due to logistics costs and inconsistent cash flow, leading to a struggle for profitability

Loanhood Cartoon

founder profiles

comps

why Loanhood: Loanhood resonates with young, fashion-forward early adopters, and with industry experts leading the way, this startup will disrupt fashion fast 🕶

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