Rentomojo is India's largest player in the organised online rental segment for furniture and appliances. Now, it is planning to go public and has filed its DRHP with SEBI. The Rentomojo company is planning to raise Rs. 150 cr. Let's discuss the structure of the Rentomojo IPO and also its business model.
Rentomojo IPO Details
Rentomojo has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India to launch its IPO. The company, known for renting furniture and appliances, is now preparing to enter the public markets with a mix of a fresh capital raise and investor exit (OFS). The company plans to use the fresh funds to reduce its debt, cover warehouse and store costs, and support everyday business needs.
IPO Size: The IPO will comprise a fresh issue of Rs.150 crore and an offer for sale (OFS) of up to 2.84 crore shares. The fresh issue will bring funds into the company, while OFS allows existing investors to offload their stake partially.
Merchant Bankers: The IPO is being managed by Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services, whereas KFin Technologies is the registrar.
Who Is Participating In OFS?
Several early investors and stakeholders are part of the offer for sale, such as Accel India (78.46 lakh shares), Chiratae Ventures (44.9 lakh shares), Edelweiss Discovery Fund (32 lakh shares), and ValueQuest SCALE Fund (27.13 lakh shares). This indicates a partial exit by early backers, which is common during IPOs. Also, the founder of Rentomojo, Geetansh Bamania, will participate in the IPO, along with Madison India Opportunities and GMO. The company may also raise Rs.30 crore before the IPO through select investors.
Who Are The Shareholders Of Rentomojo?
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Before the IPO, Rentomojo’s shareholding was largely split between institutional investors and its founder. Accel India holds the largest stake at 20.9%, followed by founder Geetansh Bamania with 14.7% and Chiratae Ventures at 13.7%. Other key investors include Edelweiss Discovery Fund and ValueQuest SCALE Fund.
About Rentomojo
The founder of Rentomojo is Geetansh Bamania. The company was founded in 2014, and Rentomojo operates at the intersection of consumer tech and lifestyle convenience. The platform allows users to rent furniture, home appliances, and other lifestyle products. According to Economic Times, in FY25 the company, based on a subscription revenue model, has an estimated 42-47% market share. Instead of making upfront purchases, customers pay a monthly fee. This is likely making it attractive for urban users who prefer flexibility.
Business Model
Rentomojo follows a subscription-based rental model. Basically, it is a (direct-to-consumer) D2C platform where users pay monthly rentals instead of buying products. Some of these products are furniture and appliances, and also some new categories like water purifiers are available for rent. The company owns inventory and manages logistics, and revenue is recurring in nature.
This model can work well in metro cities with a young working population or people who relocate frequently. Currently, Rentomojo has over 2.2 lakh live subscribers. Through 71 stores, spread across 23 cities, managing more than 7.7 lakh rental items. The focus is likely on “access over ownership", which is a growing trend in India.
Financials Of Rentmojo
In FY25, revenue from operations was Rs. 265.96 cr from Rs. 193 cr in FY24, a 38% increase yearly. The PAT was Rs. 43.11 cr in FY25, showing a 92% increase while comparing from FY24, which was Rs. 42 cr. In the first 6 months of FY26, the operating revenue reported is Rs. 176.6 cr, and profits are Rs. 61.3 cr. Rentomojo, having its headquarters in Bengaluru, raised over Rs. 650 cr through multiple funding rounds. Also, $25M is included, which was led by Edelweiss in Feb 2024. Overall, Rentomojo’s IPO is likely a combination of growth capital and investor exit, backed by a profitable and scalable rental business.
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