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The “Netflix for dresses” startup, Rent The Runway, has proven it can make a profit – an achievement rewarded with a $60 million investment from Fidelity meant to accelerate its growth, the company told Recode’s Jason Del Rey.
According to Recode’s report, the company finally achieved profitability on an EBITDA basis on its $100 million revenue run rate this year. It’s in large part due to the success of its unlimited subscription service, a $139/month program that lets women rent three items at a time and exchange them as often as they’d like.
While Rent The Runway had struggled with the launch of its unlimited subscription service, it now accounts for more than 20% of the company’s revenue. The company also eliminated performance bonuses and instead incorporated previous bonus potential into each employee’s salary, raising the base salaries for its 1,000 employees.
This newest round of funding at the end of 2016 – a successful year for Rent The Runway – came after a rocky 2015 in which Fortune spoke with former employees and investors to investigate the “exodus” of several top-level executives at the company, who were either fired or left over the span of 10 months. Investors, though, are looking at the bottom line and seem to be pleased with Rent The Runway’s financial health. Its CEO, Jenn Hymann, told Recode that its valuation is a “significant step up” from its last round in 2014, which valued the company at $520 million.