A short and sweet LinkedIn direct message introduction has ushered in a unique acquisition in the e-commerce subscription brand space.
The startups involved will be familiar to Hypepotamus readers. Rent a Romper, a startup profiled in our ecommerce roundup piece in 2022, has acquired Atlanta-based Romp + Tumble, a subscription rental clothing company for newborns and toddlers.
The acquisition, announced this week, comes after the two founders Lauren Gregor (Rent a Romper) and Tara Ghei (Romp + Tumble) were connected via a mutual friend in the fashion industry on LinkedIn.
“While I was focused on building Romp + Tumble, I would check in from time to time on what kinds of bundles Lauren was testing and appreciated all the ways Rent a Romper was experimenting in the market,” Ghei told Hypepotamus.
Lauren Gregor (left) and Tara Ghei (right)
The two brands are solving the same problem in the children’s retail space from different angles. But they share many common traits and are on a mission to help new mothers find baby clothes in a sustainable, more efficient way.
While Romp + Tumble built up its customer base by providing eco-friendly and women-owned brands, Rent a Romper has branched out to include more seasonal clothing items, including swim, winter clothing and Halloween costumes. The company has over 200 brand names available through its curated capsule wardrobe service .
Gregor lives in Los Angeles and her co-founder Kendra Koch is in Atlanta.
What the acquisition means for Atlanta
There are a lot of players in the children’s retail and clothing market. The segment is set to surpass $275 billion by 2025, according to MarketWatch.
“Children’s retail is a massive market,” said Gregor. “To Romp + Tumble coming into the space was validation for us that families were looking for more sustainable options.”
Ghei is set to stay on as an advisor and work on expanding Rent a Romper’s presence on the East Coast. The acquisition will also open up “expanded business and community partnerships within Atlanta and the Southeast,” according to a press statement.
“I think we will find some Romp + Tumble customers [will] appreciate the add-ons and perhaps even the paused / canceled customers will return,” added Ghei. “I think the premium pieces are a great add for Rent a Romper customers who are interested in discovering more brands. By joining together, our customers will also benefit from streamlined operations and partnerships that we can bring to both brand communities.”
Rent a Rompers’ further move into the Atlanta market is also a win for the growing sustainability-focused startup community in town. Beyond just providing parents with convenient shopping options, the company is a more sustainable option for baby and toddler’s clothing since new items don’t have to be constantly purchased.
It is also a positive sign for the overall sustainable fashion movement, which is gaining steam and could become a $700 billion market by 2030.
