Startup Ycloset raises $50m in third round of funding

Clothing-sharing e-commerce firm Ycloset, also known as Yi23.net, this week raised $50 million in third round funding from Alibaba Group Holding Ltd, SB China Capital and Sequoia Capital.

Founded less than two years ago, the Beijing-based firm rents clothes to customers with no additional charge for delivery and cleaning. For example, a client can pay 499 yuan ($77) per month to change an unlimited number of items during that period.

How to keep clothing clean after each service is one of the major obstacles for Chinese consumers to overcome when compared with purchasing new items.