**Rentomojo Sets Sights on IPO, Aiming to Lead India’s Rental Market**
Rentomojo, a furniture and appliance rental startup based in Bengaluru, is gearing up for a public listing within the next 18 to 24 months, positioning itself as the first company in its sector to pursue an IPO in India, as reported by its investors. In preparation for this significant milestone, the company is also planning to raise additional funding and recruit independent directors.
Geetansh Bamania, the founder of Rentomojo, expressed his evolving role, stating, “My job is moving from that of a CEO towards being a promoter or imagining myself as a promoter of a listed entity.” The startup recently secured ₹210 crore in February 2024 during its Series D and D1 funding rounds, led by Edelweiss Discovery Fund Series — I, with participation from Chiratae Ventures and Magnetic Ventures, among others, including Accel and Bain Capital.
For the fiscal year 2025, Rentomojo reported unaudited net revenue of ₹270 crore, with EBITDA rising 44% year-on-year to ₹95 crore. The company’s net profit surged to ₹40 crore, an 82% increase from ₹22 crore in FY24. Rentomojo boasts a return on capital employed exceeding 20%, with projected subscription revenue reaching ₹650 crore by March 31, 2025. The company achieved its first profitable year in FY23, reporting a profit of ₹6.2 crore alongside operating revenue of ₹121 crore. In contrast, its closest competitor, Furlenco, experienced a 10.4% decline in operating revenue for FY24, dropping to ₹139.6 crore from ₹155.8 crore in FY23, while its losses widened slightly.
Key Highlights:
– Rentomojo is on track to become the first rental startup in India to go public within 18-24 months.
– The company reported FY25 unaudited revenue of ₹270 crore, with EBITDA increasing by 44% to ₹95 crore and net profit rising by 82% to ₹40 crore.
– Revenue is evenly split between furniture and appliances, with growing segments in water purifiers and refurbished items.
– The startup operates over 50 stores to enhance product quality assurance and build consumer trust.
– Supported by prominent investors like Edelweiss, Accel, Chiratae, and Bain Capital, Rentomojo is preparing for a pre-IPO funding round and plans to add independent directors to its board.
Bamania emphasized the IPO as a significant milestone, stating, “It’s not the end but the beginning of a new journey altogether. I’ll be selling a smaller portion, if at all.” He also noted a rising demand for water purifiers, particularly among consumers in transferable jobs within the service industry, especially those in mid- to lower-level management roles. This segment is becoming increasingly competitive, with established brands like Aquaguard and Kent RO facing challenges from newer entrants such as Urban Company’s Native brand and subscription-based offerings from Livpure and Atomberg.
**FAQ:**
**What is Rentomojo’s plan for the future?**
Rentomojo aims to go public within the next 18 to 24 months, making it the first rental startup in India to pursue an IPO, while also focusing on raising additional funds and enhancing its board with independent directors.
