Pley, a rental service for LEGO sets raised a $6.75 million venture round led by Allegro Venture Partners, with participation from Floodgate, Correlation Ventures, Maven Ventures, and Western Technology Investments. The round values Pley at $20 million.
The funding will be used to grow the team, expand the service geographically to Europe and Australia, but also to broaden the offering by adding other educational toys than LEGO sets.
Toys, especially educational ones, tend to be quite expensive and often end up in a box stored away as soon as the kids lose interest in playing with them. Through a rental service parents can keep the novelty and excitement of having a new toy to play with but also keep expenses low and safe on storage space.
Pley lets their subscribers choose between different subscriptions, ranging from $15 to $39 per month and giving them access to a pool of different LEGO sets to rent.
All sets are weighed and sanitized before they are sent out again to the next family, missing pieces are replaced with up to 15 without extra charge to the subscribers. Turn around time per set is around 2,5 minutes according to WSJ. The process is according to FDA standards. “If you allow your kid to go to restaurant and lick a fork, it’s the same thing–it’s that clean.” states CEO Ranan Lachman.
Since launching in May 2013 Pley has shipped over 75.000 sets to 15.000 families who return the sets in days on average.
LEGO is fine with Pley renting their sets and a survey among Pley subscribers showed that it even raised brand awareness by 40%, and 26% of the subscribers eventually purchased LEGO sets.
- This startup rents Legos by the month and just scored $6.75M | VentureBeat
- Pley Offers ‘Netflix for Legos,’ Raises Cash at $20M Valuation to Expand | WSJ
- Exclusive: ‘Netflix for Legos’ startup Pley raises $6.75 million | CNN Money