Furniture Rental Startup RentoMojo To Suit Up For IPO In The Next 18 Months

Furniture Rental Startup RentoMojo To Suit Up For IPO In The Next 18 Months

SUMMARY

According to CEO Geetansh Bamania, the company has set itself apart in an industry where many struggle with sustainable unit economics

The CEO added that during the pandemic, the company was staring at 15 to 20-day cash runway

RentoMojo is estimated to have closed FY24 with INR 200 Cr in revenue and a profit after tax of INR 22 Cr

Online furniture rental startup RentoMojo is reportedly gearing up to file for an IPO within the next 18 months, according to its founder and CEO Geetansh Bamania.

As per an ET report, RentoMojo became profitable in FY23, setting itself apart in an industry where many competitors have struggled with sustainable unit economics. 

“When Covid started in March 2020, we were anticipating turning profitable by October that year. But because of this, it got pushed. And instead of profitability, we were staring at a 15-20-day cash runway by December. At this point we underwent layoffs, before which we managed by cutting salaries for senior management and the mid layer,” he told ET.

It is pertinent to note that in early 2020, as profitability was within sight, the pandemic exposed several challenges for RentoMojo, requiring the company to course-correct before eventually achieving profitability. This period, Bamania said, instilled a mindset of sustainable growth for the business.

Inc42 has reached out to the company. The story will be updated based on their responses.

“Prior to Covid, the way the ecosystem was, every time (we were crunched) we were trying to chase the next round of capital This time when we were against the wall, we knew we had to solve the problem ourselves without depending on any external capital. That was a pivotal moment for us when we started going after all costs and overheads to cut down on excessiveness but still be able to service and grow,” he added.

Founded in 2014 by Bamania, Achal Mittal, Ajay Nain and Gautam Adukia, RentoMojo leases out consumer appliances, furniture and other furnishing products through its app and website. 

The Bengaluru-based startup claims to be operational across 16 cities and has served nearly 4.5 Lakh customers since its inception. It also claims to have been profitable for the last 10 quarters. It competes against the likes of Fabrento, Rentickle, Furlenco and Cityfurnish. 

RentoMojo is estimated to have closed FY24 with INR 200 Cr in revenue and a profit after tax of INR 22 Cr, according to Bamania. In FY23, the company reported a net profit of INR 6.2 Cr versus INR 121 Cr in revenues.

The development comes months after Inc42 reported that online furniture rental startup RentoMojo raised an undisclosed amount from ValueQuest Scale Fund in a Series D funding round. The investment included a mix of primary funding and secondary purchases for a minority stake in the company. 

In February, RentoMojo secured INR 210 Cr ($25 Mn) in its Series D and D1 rounds led by Edelweiss Discovery Fund Series – I.

You have reached your limit of free stories
This Diwali, Get Up To 72% Off On Inc42 Plus

Become A Startup Insider With Inc42 Plus

Offer Fading Away This Week
countdownmail.com
2 YEAR PLAN
₹19999
₹6999
₹291/Month
UNLOCK 65% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹3999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Furniture Rental Startup RentoMojo To Suit Up For IPO In The Next 18 Months-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Furniture Rental Startup RentoMojo To Suit Up For IPO In The Next 18 Months-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Furniture Rental Startup RentoMojo To Suit Up For IPO In The Next 18 Months-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Furniture Rental Startup RentoMojo To Suit Up For IPO In The Next 18 Months-Inc42 Media
Furniture Rental Startup RentoMojo To Suit Up For IPO In The Next 18 Months-Inc42 Media
You’re in Good company