Rentomojo targets IPO by FY27 as revenues, profits grow

Mint

5 hours ago

BENGALURU
:
Rentomojo, a Bengaluru-based furniture and appliance rental startup, is preparing for a public listing in the next 18 to 24 months, making it the first company in its sector to aim for an IPO in India, according to its investors.
As part of the pre-IPO push, the company is also looking to raise a fresh funding round and onboard independent directors. 'My job is moving from that of a CEO towards being a promoter or imagining myself as a promoter of a listed entity," said Geetansh Bamania, founder of Rentomojo.
The startup last raised ₹210 crore in February 2024 in its Series D and D1 round, which was led by Edelweiss Discovery Fund Series — I and included participation from Chiratae Ventures and Magnetic Ventures. Other investors include Accel and Bain Capital.
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For FY25, Rentomojo reported unaudited net revenue of ₹270 crore and Ebitda of ₹95 crore—up 44% from ₹66 crore the previous year. Net profit rose to ₹40 crore from ₹22 crore in FY24, marking an 82% jump. The company claims a return on capital employed of over 20%, with potential subscription revenue of ₹650 crore as of 31 March 2025. Rentomojo's first profitable year was in FY23, when it posted ₹6.2 crore in profit, alongside operating revenue of ₹121 crore in that fiscal.
In comparison, the company's closest rival, Furlenco, saw its operating revenue in FY24 decline 10.4% to ₹139.6 crore, down from ₹155.8 crore in FY23. According to Entrackr, its losses also widened from ₹128 crore in FY23 to ₹130 crore.
'It's more of a milestone. It's not the end but the beginning of a new journey altogether. I'll be selling a smaller portion, if at all," Bamania said of the IPO.
Furniture and appliances each contribute 50% of Rentomojo's revenue. Bamania noted a surge in demand for water purifiers—a key product for consumers in transferable jobs in the service industry, particularly those in mid- to lower-level management roles
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Water purifiers are quickly becoming a hotly contested segment as legacy players like Aquaguard, Kent RO face increasing competition from newer entrants like Urban Company's Native brand. Others, like Livpure offer customers a subscription plan to water purifiers whereas appliance maker Atomberg has recently launched a water purifiers.
Quality through stores
An interesting revenue stream is refurbished furniture, which made up 10% of FY25's revenue. 'This was the biggest taboo in our rental industry that if the sofa comes to you, what shape or form it will be received in," Bamania said. 'To combat that, opening retail stores was one of the biggest objectives for us."
To address quality concerns, the company invested in a 'phygital" retail strategy, launching physical stores across India. It currently operates over 50 outlets, including 27 to 29 in Bengaluru, six in NCR, and others in Pune, Hyderabad, and Chandigarh. A 51st store will open in Mumbai.
'We took a step to open the retail stores with a lot of assumptions, and those objectives worked out for us," Bamania said.
Rentomojo's offline push is aligned with a broader trend among D2C startups in India. Despite the growth of online retail, nearly 90% of India's projected $2 trillion retail market in 2030 will still be offline, according to a Redseer, Accel, and Fireside Ventures report. The same study found that omnichannel shoppers spend 2.5 times more than single-channel consumers.
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Rentomojo was started in 2014 by Bamania and Ajay Nainto to serve a new generation of urban Indian professionals who move cities frequently for work. The startup's subscription model allows customers to rent household essentials without committing to ownership—an offering increasingly relevant in India's gig and service economy.
As it moves closer to an IPO, the company is increasing its focus on operational efficiency, customer trust, and scalable growth—all essential ingredients as it transitions from startup to listed entity.