For many small businesses, growth begins online. For rax, Canada’s only peer-to-peer fashion rental app, that journey started as a fully digital platform helping people make money lending their closet and save up to 90% when borrowing. But when rax stepped into the physical world through the STACKTx Small Business Grant, they discovered a whole new door of opportunities, blending tech, fashion, and community in real life.
Turning a Personal Problem Into a National Movement
“The idea for rax came from a very real, very expensive problem – my own closet,” shares founder Marley.
“One summer, I went to seven weddings and spent $4,000 on dresses I only wore once. I realized I wasn’t alone — most of us have closets full of beautiful pieces that sit unworn 80% of the time. At the same time, fast fashion is fueling massive waste and emissions. I wanted to create a way for people to share fashion instead of constantly buying it — to turn our closets into community wardrobes that make style more accessible, sustainable, and circular.”
That idea became rax — a platform that connects people who want to rent high-quality outfits for special occasions with those who have them sitting in their closets. Unlike traditional rental companies that buy, warehouse, and dry-clean clothing, rax takes a peer-to-peer approach, unlocking the 80% of clothes that sit idle. With integrated shipping and payments, anyone can lend or borrow directly through the app — saving up to 90% off retail or earning money from what they already own. Every rental also reduces carbon, water, and waste by roughly 8%, making fashion not just more affordable, but more sustainable.
From Digital to Physical: Bringing the Closet to Life
When rax received the opportunity to activate at STACKT Market as part of the STACKTx Small Business Grant, they knew it was time to experiment beyond the screen. The team reimagined their digital brand as an interactive, in-person experience, featuring racks curated by local influencers, mirrors for try-on moments, and partnerships with Toronto startups that made the space feel like a true community hub.
“It was incredible,” says Marley. “The pop-up at STACKT was our first time bringing the brand to life beyond the app, and it really proved the power of community. People could see, touch, and try on the pieces, it turned digital sharing into a real social experience. We hosted influencer closet takeovers, styling sessions, colour analysis, and community rentals that made circular fashion tangible.”
The Impact: Awareness, Education, and Growth
The results were powerful. During the five-week activation, rax saw a 100% increase in app downloads, a 40% increase in listings from local lenders who discovered them in person, and over 1 million social media impressions that month — fueled by creators sharing their “rent my closet” experiences.
As Marley explains, “It also gave us valuable customer feedback that we’re now using to shape our U.S. launch. Peer-to-peer rental is a new concept, people love it once they understand it, but it’s much easier to explain and experience in person than online.”
The pop-up helped rax bridge that educational gap, showing firsthand how physical activations can amplify awareness for digital-first brands.
Scaling Up: U.S. Launch, TechCrunch, and the AI Roadmap
Now, rax is scaling even further. The company is expanding into the U.S., launching a dedicated app and building new inventory to meet growing demand. They’ll also be showcasing their innovation at TechCrunch in the U.S. the same stage where global disruptors like Fitbit and Dropbox made their debut.
Looking forward, rax is embracing one of the most transformative tools available to small businesses today: artificial intelligence.
“AI will play a huge role in how we personalize and scale rax,” says Marley. “We’re working toward features like digital try-ons, smart outfit recommendations, and dynamic pricing tools for lenders. Imagine uploading a photo and instantly seeing how a dress would fit your body type — or having AI match you with the perfect style based on your event, mood, or sustainability goals. Our long-term vision is a smart, data-driven wardrobe that helps users look good while doing good for the planet.”
Challenges, Wins, and Lessons for Small Business Month
Building a tech startup while bootstrapping hasn’t been easy. “The biggest challenge has been balancing growth with resources — it forces you to be creative and scrappy,” Marley admits. “But the biggest win has been the response from our community. Seeing people earn their first $100 from a dress that would’ve collected dust or rent their dream outfit for a fraction of retail — that’s what makes it all worth it.”
For Small Business Month, Marley’s advice to other entrepreneurs is simple but powerful:
“Start with the problem you live. When you’ve experienced it yourself, you’ll have the conviction to keep going when things get tough. Test small, listen to your users, and don’t wait for ‘perfect’ — momentum beats perfection every time. And remember that collaboration is your greatest growth lever. Our partnerships and community events have driven more growth than any ad spend ever could.”
The Future of Circular Fashion
From app downloads to influencer-driven racks, rax is proof that when digital-first businesses step into the physical world, they can unlock new growth and deeper community engagement. With AI on the horizon and U.S. expansion underway, this Canadian startup isn’t just renting clothes — it’s redefining how we think about fashion, ownership, and sustainability.
As Marley sums it up:
“rax received hundreds of thousands of impressions on social media thanks to the increased brand awareness from the storefront.”
Download the rax App and see how the future of fashion – circular, smart, and community-powered, fits right in your pocket.