RentoMojo’s FY24 Profit Jumps 3X To INR 22 Cr, Operating Revenue Nears INR 200 Cr

Online furniture rental startup RentoMojo saw its operating revenue inching closer to INR 200 Cr mark in the financial year 2023-24 (FY24), helped by strong customer demand and increased efficiency due to automation. 

The Bengaluru-based startup logged a 60% year-on-year increase in its operating revenue at INR 193 Cr in FY24.

Further, RentoMojo posted a profit after tax (PAT) of INR 22 Cr in FY24, a more than 3X jump from INR 6 Cr in the previous year, on the back of strong growth in its business and controlled rise in expenses.

Normalised PAT, excluding extraordinary items, stood at INR 28 Cr during the year under review.

The company saw its EBITDA grow 142% YoY to INR 66 Cr in the reported period as focus on automation increased operational efficiency and allowed it to scale an occupancy led business.

In addition to increase in average items deployed, longer average subscription periods, and high repeat rates also strengthened recurring revenue streams for RentoMojo.

RentoMojo also benefited from non-committal subscription models and bundled service offerings like free location and free repair, which gave the company a competitive edge over its peers.

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

The Bengaluru-based company has a presence in more than 19 cities and claims to have served over 4 Lakh customers since its inception. It also claims to have achieved profitability in October 2021. 

We’ve scaled rapidly by leveraging automation in a very high operational intensive business and disciplined cost management, enabling sustainable growth and increased profitability. With the next few decades expected to be marked by high economic growth driven by urbanisation and rising opportunities in metros and Tier I, II cities for young, mobile Indians, we remain bullish on the shift toward flexible solutions over ownership. 

– Geetansh Bamania, cofounder and CEO, RentoMojo

This comes at a time when RentoMojo is gearing up for its stock market debut. In an interview with ET last month, RentoMojo CEO Bamania said that the company is eyeing a public listing in the next 18 months.

In the lead up to its potential initial public offering (IPO), RentoMojo recently raised an undisclosed amount from ValueQuest Scale Fund as part of its Series D funding round in a mix of primary equity infusion and secondary share sale. 

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

Overall, the startup has raised total funding of over $70 Mn till date and counts marquee investors such as Bain Capital, Accel, and IDG Capital among its backers.

RentoMojo competes with the likes of Furlenco, Fabrento, Rentickle, and Cityfurnish in the Indian furniture market, which is estimated to become a nearly $30 Bn opportunity by 2029, according to a report.