Canadian peer-to-peer clothing rental company Rax is expanding to the U.S.

Marley Alles began her career in accounting, believing her dream was to work at a large company. Once she achieved that goal, however, she found herself unfulfilled. She began exploring other interests and grew curious about the startup world, devouring podcasts and books while taking notes on topics that captivated her.

The idea for her business took shape one summer when many of her friends got married. After spending thousands on bridesmaid dresses and bachelorette outfits, someone asked to borrow one of her dresses. She agreed, and that simple exchange sparked a larger question: how could this be done on a bigger scale? Alles had a closet full of expensive dresses she would likely never wear again but did not want to sell. That realization led her to create Rax.

Alles launched Rax earlier this year as a peer-to-peer clothing rental marketplace. The company does not own inventory; instead, users browse listings and connect with people who have items to rent. She bootstrapped the venture, funding the app’s development and official launch. Initial customers were friends and family, with growth coming through word of mouth. Alles embraced “building in public,” sharing her journey online to build an engaged audience. The app now has about 5,000 users.

Rax is among the first platforms of its kind in Toronto. It operates similarly to services like Rent-the-Runway, Pickle, or ByRotation. Clothing rental, like buying secondhand, has gained popularity as a more environmentally sustainable alternative to constantly buying new fashion. Alles notes it drives the circularity of fashion.

A key difference for Rax is its focus on long-term rentals. Users can rent items for up to six months, whereas many competitor platforms primarily offer daily rentals, which can become expensive for longer needs like a vacation or a seasonal winter coat.

At TechCrunch Disrupt in October, Rax announced its first expansion into the U.S. market. Alles, a longtime fan of TechCrunch, applied for the Battlefield competition and won the top consumer pitch. She was surprised by the win, given the other companies in her category had large user bases, significant funding, or notable founders. She found the experience invaluable, taking the opportunity to introduce herself to other founders, attend sessions, and network. She cites this as a major lesson learned: the importance of in-person interaction for building community connections.

Now, following Disrupt, the company plans to continue its expansion in New York and begin developing a rental service platform for fashion designers and retailers looking to offer rental options to consumers. Alles states they have the technology and the audience, and brands are increasingly seeking sustainable solutions, which companies like Rax can provide. She believes awareness is growing and things are moving in a positive direction.