The e-retailer reports a $126 million net loss, stemming from a $640 million year-over-year increase in spending in the quarter on technology and content ...
The e-retailer has 15,000 members and has shipped 75,000 Lego sets since 2013.
Pley, an online rental subscription that bills itself as the “Netflix for Legos toys,” has raised $6.75 million in a Series A funding round. Allegro Venture Partners led the funding round, which also included Floodgate, Correlation Ventures, Maven Ventures and Western Technology Investments.
Pley launched in 2013 and until recently went by the moniker Pleygo. Its customers pay a monthly fee of $15, $25 or $39 to receive sets of Lego toys each month, which members then return with free shipping when they tire of particular Lego sets. Consumers can buy sets they like. Pley says it has 15,000 members and that it has shipped more than 75,000 Lego packages from its San Jose warehouse.
“By leveraging the sharing economy and enabling consumers to fully enjoy a product without owning it, Pley provides a more efficient way to consume toys,” says Ranan Lachman, CEO and founder of Pley. “We serve a growing client base that realizes educational toys are expensive, kids outgrow them quickly and they clutter the home. Lego is just the start as we are using the new capital infusion to create a multi-product platform that will allow families to experience playtime in a more affordable, convenient and environmentally-friendly way.”
The company did not say how it would use the capital. An Allergo representative will join Pley’s board of directors, which the company says already includes Tom Dillon, a former Netflix Inc. chief operating officer, and Michael Scharff, a former head of e-commerce for Toys ‘R’Us Inc. Netflix is No. 9 in Internet Retailer’s 2013 Top 500 Guide, while Toys ‘R’ Us is No. 30.