19 July 2017, India:
Furniture and consumer durables rental startup RentoMojo has raised $10 million in series B funding from private equity investor Bain Capital Ventures and fintech entrepreneur Renaud Laplanche.
Existing investors Accel Partners and IDG Ventures contributed 20-30% of the fund and have increased their share in the firm as per the report by The Mint.
Bangalore-based Rentomojo is a unique company which offers a variety of services and goods be it in Furniture like Dining tables, Coffee tables, Beds or Electronic appliances like Washing machine, Refrigerator, Microwave oven, TVs and much more on Rental. Rentomojo was founded in November 2014 by IIT Madras graduates Geetansh Bamania and Ajay Nain. The startup allows users to rent furniture, home furnishings and appliances for at least three months.
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“We are looking at the India opportunity in two categories Indian companies going after the local market, and those based in India but chasing global markets,” said Salil Deshpande, managing director of Bain Capital Ventures (BCV). “RentoMojo is very focused on the needs of the Indian market.”
“We were also impressed by RentoMojo’s team. The company has almost perfected a unique model where they can get customers furniture, appliances and vehicles, while also securitizing these assets and selling the cash flow to institutions,” Deshpande said.
RentoMojo chief executive Geetansh Bamania said, “Bain coming in at this stage and Renaud’s faith in us is a big confidence booster. I think people will now move from seeing us an e-commerce company to a fin-tech consumer leasing firm.”
“We are also open to looking at acquisitions if we see the intrinsic value,” Bamania said. He said the startup plans to enter new categories for leasing over the next few months but did not give any details.
Bamania told that the funds will be used for maturing the product and building a good credit scoring algorithm, improving user experience, as well as building a strong team by hiring at the leadership level.