IPO Central
 
In a significant development for India’s consumer rental economy, Rentomojo has confirmed plans to file its Draft Red Herring Prospectus (DRHP) with market regulator SEBI by 2025. Founder and CEO Geetansh Bamania emphasized that the company is currently evaluating the size and timeline of the IPO, which is expected to unfold over the next several months.
 
Founded in 2014 by Geetansh Bamania, Achal Mittal, Ajay Nain, and Gautam Adukia, Rentomojo leases out furniture and home appliances via an online subscription model. The startup operates in 16 Indian cities and claims to have served nearly 4.5 lakh customers since inception.
 
The road to profitability, however, was far from smooth. According to various market reports and public statements, the onset of the COVID-19 pandemic nearly derailed the company’s financial trajectory. By December 2020, the company reportedly had only a 15–20-day cash runway, prompting immediate cost-cutting measures, including salary reductions and layoffs.
 
This crisis period is said to have pushed the management to move away from dependency on external capital. In what has been described as a ‘pivotal moment,’ the company shifted focus toward more disciplined operations and sustainable growth
 
Rentomojo FY24 Performance
 
The company’s turnaround was solidified in FY24, during which Rentomojo posted revenue of INR 195.8 crore, up 59% from FY23, and a net profit of INR 22.1 crore, up from INR 6.2 crore in the previous fiscal year.
 
In contrast, one of its major competitors, Furlenco, reported a widening loss of INR 130.2 crore with a decline in revenue to INR 151.9 crore in FY24—further cementing Rentomojo’s standout position in the sector.
 
The company attributes its improved performance to tech-driven efficiencies. Automated approvals for customer queries have increased from 30% to over 70%, reducing turnaround time and boosting customer experience. The operational revamp has also resulted in gross margins exceeding 60% and a high inventory occupancy rate of 85%.
 
FY25 Targets and Expansion Plans

Looking ahead, Rentomojo expects to close FY25 with 40% revenue growth, targeting an EBITDA of INR 100 crore and net profits of INR 40 crore. Its revenue is currently evenly divided between furniture and appliance rentals.
 
The company operates 20 warehouses and relies on third-party logistics for delivery. Free relocation services and a flexible subscription model have made it especially popular among young professionals and migrants, offering an alternative to high upfront furnishing costs or EMI-based purchases.
 
“Furnishing a 1BHK costs around INR 2 lakh—almost five to six times the average monthly salary,” explained Bamania. “Our model provides affordability and flexibility, which traditional financing doesn’t.”
 
Investor Confidence and Pre-IPO Hype

Rentomojo has raised USD 93.2 million (~INR 800 crore) so far, with the latest Series D and D1 rounds in February 2024 bringing in INR 210 crore (~USD 25 million). The funding was led by Edelweiss Discovery Fund Series – I and ValueQuest Scale Fund and included primary capital and secondary share sales.
 
The company’s last known valuation was USD 110 million (~INR 945 crore) and sources indicate that the upcoming round could see a valuation bump given its strong numbers and 10 quarters of profitability.
 
Rentomojo has Accel (21.42%) and Chiratae Ventures (13.77%) as its major investors and both are expected to participate in pre-IPO funding.
 
Final Words

Rentomojo’s profitability and operational discipline puts it in a league of its own in the furniture and appliance rental space which has historically been a unit economics nightmare.
 
As the company gets ready to go public, its ability to keep the momentum, attract interest and compete in a changing consumer landscape will be watched closely.
 
With a strong FY24 behind and an aggressive FY25 ahead, Rentomojo IPO will be a milestone not just for the company but for the subscription based rental economy in India.