Accel-Backed Rentomojo Kicks Off IPO Preparations

SUMMARY

The startup has onboarded IIFL and Motilal Oswal as the book running lead managers for its initial public offering (IPO) and is eyeing a public listing in FY27

The startup’s net profit zoomed 82% to INR 40 Cr in FY25 from INR 22.1 Cr profit in FY24, as per its provisional numbers

Rentomojo has raised a funding of about INR 400 Cr ($45.3 Mn) to date from the likes of Accel, Chiratae Ventures, and Bain Capital

Amid the ongoing startup IPO boom, furniture rental startup RentoMojo has begun preparations for its public listing. The Accel-backed startup has onboarded IIFL and Motilal Oswal as the book running lead managers for its initial public offering (IPO), sources told Inc42.

The startup is eyeing its public listing by FY27. Notably, RentoMojo is yet to convert into a public entity, the first prerequisite step before going for a listing in India. The Bengaluru-based startup is also yet to file its financial statements for FY25.

However, the sources said that the startup’s net profit zoomed 82% to INR 40 Cr in FY25 from INR 22.1 Cr profit in FY24, as per its provisional numbers. Its EBITDA is expected to have jumped 40% YoY to INR 92 Cr in FY25.

Inc42 has reached out to RentoMojo for comments on the development. The story would be updated on receiving responses. The development was first reported by Economic Times.

Founded in 2014 by Geetansh Bamania and Ajay Nain, RentoMojo leases out consumer appliances, furniture and furnishing products through its app and website.

The startup claims to have an active subscriber base of over 2.2 Lakh and deployed over 7.5 Lakh total items to its customers. RentoMojo operates 65 physical stores across 22 cities in India.

The startup has raised a funding of about INR 400 Cr ($45.3 Mn) to date from the likes of Accel, Chiratae Ventures, and Bain Capital.

RentoMojo competes with the likes of Furlenco, Rentickle, Cityfurnish, among others. The segment has been seeing muted growth trends. Demand in metros has plateaued, with customers increasingly opting to buy furniture through easy EMIs rather than rent.

High logistics and refurbishment costs, quality concerns, and inconsistent service experiences have further dented adoption. Meanwhile, intense competition and thin margins have made it difficult for rental players to scale profitably.

Furlenco, in FY24, saw a 10% decline in operating revenue to INR 140 Cr from INR 155.8 Cr. Its loss for the fiscal stood at almost INR 130 Cr, up 2% YoY.