Closet

Pakistan's 1st Clothing Rental Platform
Startup name
Closet
Founding date
January 2018
Incorporation
No
Total team member
3
Startup stage
Paying users
Category
Consumer
Sector
Clothing, Rental, Website
Product usage or interact
Mobile/Tablet (Android)
City
Karachi, Sindh, Pakistan

Elevator pitch

Closet is the only clothing rental platform in Pakistan where women can lend their formal clothes for extra money while sitting at home and renters can rent these clothes out for 10% of their original price so they may enjoy their Cinderella moment without having to spend thousands of rupees.

Team

Laiba Amir

My name is Laiba Amir, a 21 year old Computational Finance student who is passionate about bringing about a new culture and revolutionizing the world with her ideas. I'm friendly, love to work in teams and have an amazing sense of humour as people say. I'm somewhat bossy in nature too.

Ehtisham Mashkoor

My name is Ehtisham Mashkoor. I'm a 22 year old Computational Finance student from NED University. My entire family is job oriented whereas I was always passionate about starting a business that will bring about a change in people's lives and will make them better if not best.

Sidra Mujahid

I am Sidra Mujahid,23 years old and final year student at NED University. My keens interest is studying about fabric and get understanding about peoples psychology. I love keeping pets and plants. I am a friendly person but not too much talkative.

Business model

Target customer

Women Aged 17-40 living in Pakistan currently.

Customer acquisition strategy

We plan to acquire customers through our website and our social media accounts on Facebook, Instagram and even Snapchat. We believe that social media has the power to influence and change the mindset of people and hence we opted this very source of communication to let people know that now they do not need to spend a handful to look gorgeous on any occasion.

Revenue model

Our revenue model revolves around commission fees which we get each time any outfit is rented which is usually 20-30% of the base rent. We basically pick up clothes from lenders when they approve the Base Rents proposed to them. Once the outfit is picked up, it is checked for quality assurance, photographed, dry-cleaned and kept. When a renter rents it out, she pays a price that includes all are cost as well as Base rent and our commission.

Market info

Market size

$ 10,000,000,000

Competition

We do not have any competitors in Pakistan at the very moment. As far as the West is concerned, Rent the Runway can be our competitor once we expand at such a huge scale but our business model is very different from them. They buy dresses at one-third of the actual price from designers and then rent them out after which they earn profits from the third time. We do not buy any dresses and hence rent the lent dresses while earning 20-30% each time so we earn profit from the very first time.

KPI's

  • 21,900 Revenue Stream ( Rs)
  • 1,373 Facebook followers in last month
  • 50 Number of dresses lended
  • 30 Number of dresses rented
  • 25 Average profit per Dress ( in percentage)
  • 60 Customer Retention Rate (%)
  • 75 Customer Acquisition Rate (%)
  • 730 Average Revenue per dress (Rs)

Startup traction

In last month we got 1373 followers in our closet group and 400 likes on our page. Lenders are lending their dresses and the same lenders are showing interest in lending even more dresses and customers are renting those dresses. We have not done any marketing campaign yet and even without any major marketing we are getting such a positive response. We will be doing social media promotions in this week and will be updating in coming week about the progress.

Publication date: 10 April 2018