Rentomojo IPO Insights and Updates

Rentomojo, a platform for renting furniture and appliances, is receiving important observations from the Securities and Exchange Board of India (SEBI) regarding its upcoming initial public offering (IPO). This marks a significant move towards its debut in the public market.

Details of the IPO

According to the draft red herring prospectus (DRHP) prepared by the company, the IPO includes a new issue of shares valued at Rs 150 crore alongside an offer for sale (OFS) featuring up to 28.4 million equity shares from current shareholders. Promoter Geetansh Bamania oversees the company’s operations.

Utilisation of Proceeds

The funds generated from the new issue will be allocated to repaying or prepaying specific loans, covering lease rentals and licence fees for warehouses and experience stores, as well as for general corporate uses.

Legal Considerations

SEBI’s observations arrive after Rentomojo faced legal challenges concerning its IPO plans. In March, former co-founder Ajay Nain approached the National Company Law Tribunal (NCLT) to prevent the IPO. The DRHP states that Nain filed a petition with the Bengaluru bench against the company, its promoter, directors, chief financial officer, RM Employee Benefit Trust, and others.

Company Overview

Founded in 2014, Rentomojo is a technology-driven platform offering rental and subscription services for furniture and home appliances. By September 30, 2025, it had served 227,511 active subscribers across 22 cities, operating 67 experience stores and 21 warehouses, along with a diverse portfolio of 728,773 live products.

Market Position

As per a Redseer report, Rentomojo commands an estimated market share of 42% to 47% in the organised rental market for home furniture and appliances—excluding water purifiers—based on subscription revenue for the fiscal year 2025.

Financial Performance

For the six months ending September 30, 2025, Rentomojo reported operational revenue of Rs 176.61 crore, with a profit after tax amounting to Rs 61.38 crore. In the fiscal year 2025, the company generated revenue of Rs 265.96 crore, resulting in a profit after tax of Rs 43.11 crore.

Advisory Team

The leading book running managers for the issue include Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services. The company’s equity shares are set to be listed on both the BSE and NSE.