Highlights
Rentomojo IPO – Furniture and Appliance Rental
Rentomojo, a leading furniture and appliance rental platform, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) aiming to raise Rs 150 crore through a fresh issue in its upcoming initial public offering (IPO).
Details of the IPO
The proposed IPO will consist of a fresh equity share issue valued at Rs 150 crore, in addition to an offer for sale (OFS) up to 2.84 crore equity shares from existing shareholders. Accel India will spearhead the OFS by divesting 78.46 lakh shares, while Chiratae Ventures will offer 44.9 lakh shares. Additionally, ValueQuest S.C.A.L.E Fund and Edelweiss Discovery Fund plan to sell 27.13 lakh and 32 lakh shares, respectively. Founder Geetansh Bamania, alongside Madison India Opportunities and GMO, will also partake in the OFS. Furthermore, the company is contemplating a pre-IPO placement amounting to Rs 30 crore.
Financial Advisors
Axis Capital, Motilal Oswal, and IIFL Capital are serving as the merchant bankers for the issue, whereas KFin Technologies will act as the registrar for the IPO.
Utilisation of Funds
The funds raised from the fresh issue are intended to be allocated for repaying outstanding debts, covering lease rentals and licensing fees for warehouses and experience centres, as well as for general corporate needs.
Company Overview
Founded in 2014, Rentomojo is positioned at the fusion of consumer technology and lifestyle offerings, providing rental services for furniture, appliances, and emerging categories like water purifiers. The platform currently caters to more than 2.2 lakh active subscribers, managing over 7.7 lakh rental products across 23 cities through 71 experience stores.
According to the DRHP, Accel India stands as the largest stakeholder with a 20.92% ownership, followed by founder Geetansh Bamania and Chiratae Ventures possessing 14.69% and 13.69%, respectively. Edelweiss Discovery Fund holds a 10.53% stake, while ValueQuest S.C.A.L.E Fund controls 8.92%.
Funding History
The Bengaluru-based company has successfully raised over Rs 650 crore through various funding rounds, including a $25 million round led by Edelweiss in February 2024.
Financial Performance
On the financial side, Rentomojo reported Rs 176.6 crore in operating revenue and a net profit of Rs 61.3 crore in the first six months of FY26. For FY25, the company recorded Rs 266 crore in operating revenue, marking a 38% increase year-on-year from Rs 193 crore in FY24, with net profit soaring 92% to approximately Rs 43 crore.