The country’s biggest rental solution company Rentomojo receives fresh funding of Rs. 10 crore from its existing back up corporations which are Accel & Chiratae Ventures. A monthly rental mode is used to get payments from the customers and offer the optimum convenience that is requisite for existing in a proper lifestyle.
MORE ABOUT RENTOMOJO
Rentomojo is an online rental solution corporation offering possible offerings for different needs of its customers. It was established in 2014 by Achal Mittal,Ajay Nain and Geetansh Barmania. They tried to understand that most of the people don’t find furniture as a good investment option.
Therefore; we could open a new market offering them those products with best assured quality on rent. You can choose your city and exercise the promised services with minimal documentation like refundable deposits, paying after using, swapping products, relocating them for free and transferring subscription when required. Additional benefits of annual cleaning, damage waiver, free delivery & maintenance is also available.
The prominent investors in the venture are:
- Accel – A company that has backed up ventures like Etsy, Swiggy, Urbanclap and Vox Media.
- Chiratae – It consists of a portfolio of 220 companies across the globe thereby; having a strong network.
- Bain Capital – It is a leading multi asset company having a huge investment of close to $105 billion in different ventures across the globe.
The company started its series c funding during mid 2019 and has managed to get Rs. 100 crores from various investors. According to sources a special resolution has been passed by the enterprise to create allotment on a certain predetermined rate and number mentioned below:
Number :1074 preference shares
Issue Price: Rs 101720.79 per share
Accel has systematically put in Rs 7.28 crore while Chiratae has significantly contributed Rs. 3.64 crore. Keeping this in line; the majority stakeholders are as described:
Co-founder’s share – 13.23%
Bain Capital- 8.5%
Employee Stock Options (ESOPs)- 6.10%
The current or present valuation has increased close to 13.3% due to this raise. So this raise basically is a mode to make this expansion a bit more fast to meet the competitive spirit.
PRESENT MARKET PERFORMANCE
The company faced a downtrend during the pandemic like many other businesses. The exact details would be out when the company makes it official through its financial statements but presumably; the revenue in the last financial year is expected to set up a record of growth in operating revenue which will be close to 32.5%. The operating income has also touched the figure of Rs.143 crore. The loss however has increased to Rs. 85.54 crore.
Gone are the days when people use to only go for renting places.
The definition of renting now extends to possibly everything from online streaming to furniture.
How can this opportunity not grabbed by Rentmojo??
Rentomojo has definitely made the best move.
As the catch is not in expanding the business but in taking the advantage of the rental market. Pricewaterhouse Coopers already revealed that this market would touch a $250 billion by the year 2025 globally across all waters. That makes every start up make an eye on tapping the best share of the market.