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Franklin Templeton, Bain Capital co-lead $125M funding round for Rent the Runway

Asset manager Franklin Templeton Investments Corp. and Bain Capital Ventures LP co-led a $125 million series F funding round for Rent the Runway Inc.

Known for lending designer dresses to women, the decade-old company achieved "unicorn" status with a total valuation of $1 billion after the financing, The New York Times reported, adding that its total equity reached $337 million.

According to the March 21 report, Rent the Runway worked to build investor relations in the latest round of financing in the event it needs support for a potential IPO in the future.

As part of the transaction, Sara Araghi of Franklin Templeton took a seat on Rent the Runway's board. Aside from the two returning investors, new investors T. Rowe Price Group Inc. and Hamilton Lane Advisors LLC participated in the fund raise, according to S&P Global Market Intelligence data.