La Reina, an Egyptian online rental startup just raised $ 1 million in a Series A round that was led by Algebra Ventures, and global investors 500 Startups.
Launched in 2016 by Ghada El-Tanawy and Amr Diab, La Reina allows women to rent evening and bridal gowns – it’s the perfect solution if you don’t want to go overspend on a dress you’re only going to wear once. The startup’s business model is based on partnerships with clients, where they work hand in hand with dress owners and receive a rate upon delivery.
Ghada mentions that the idea came to her mind when she faced some difficulties finding the right designer dress for her budget at her own wedding. This problem inspired her to launch La Reina.
According to Ghada, in the past two years, the startups have had 250 clients and 80 brides, with the dress owners making $3.5 million. “Now that the concept itself is gaining momentum, our USP is in how systematically we operate,” co-founder Amr Diab says. He adds that their process secures the safety of each dress through standard paperwork and insurance. “On the other hand, our USP in comparison to new competitors is in the diversity and volume of our inventory,” he noted.
When it comes to the investors, Ghada stated that they consider them more of partners than investors, especially since they’ve known 500 Startups since 2016 where they’ve helped La Reina with their digital and marketing strategy. She also adds that during the meeting with the investors, they both shared similar visions for the startup.
With the new funds, the startup is going to use it to find talent, and plan on the long-term to be a player in the local fashion industry.