Rentomojo’s Transition to a Public Limited Company

Rentomojo has made the significant decision to become a public limited company in preparation for its upcoming initial public offering (IPO). The board of directors and shareholders of Rentomojo have agreed to change “Rentomojo Private Limited” to “Rentomojo Limited” by removing the word “Private” through a special resolution, as indicated by regulatory filings reviewed by Startup Superb.

Strategic Plans for IPO

This change comes as the Bengaluru-based firm sets the stage for its IPO, targeting a public listing around FY27. Since its inception in 2014, Rentomojo has carved a niche at the crossroads of consumer technology and lifestyle by providing rental services for furniture, appliances, and even newer categories such as water purifiers.

Growth and Subscriber Base

Currently, Rentomojo caters to over 2.2 lakh active subscribers and manages an extensive inventory of more than 7.7 lakh rental items across 23 cities through its 71 experience stores.

Financial Performance

In its FY25 press release, the company reported a compound annual growth rate (CAGR) of 48.24% in net rental revenue from FY23 to FY25. EBITDA rose to Rs 118.41 crore in FY25 from Rs 78.23 crore in FY24, showcasing enhanced operational efficiency.

Funding and Investor Support

Rentomojo has successfully secured over Rs 650 crore from various funding rounds, including a recent $25 million investment led by Edelweiss. Prominent investors include Accel, Chiratae Ventures, Bain Capital, as well as Edelweiss Discovery Fund and ValueQuest S.C.A.L.E. Fund. Additionally, the company receives backing from numerous banks and non-banking financial companies (NBFCs).

Revenue Growth

For FY25, Rentomojo achieved an operating revenue of Rs 266 crore, marking a 38% increase from Rs 193 crore in FY24. The net profit substantially rose by 92% to approximately Rs 43 crore during the same timeframe.