India’s startup ecosystem has been buzzing with IPO activity, and the latest company to prepare for its market debut is RentoMojo, a Bengaluru-based furniture rental platform. Founded in 2014 by Geetansh Bamania and Ajay Nain, RentoMojo lets people rent furniture, appliances, and electronics instead of buying them. While the idea has caught on in India’s metro cities, it still faces skepticism in smaller towns. With 2.2 lakh active subscribers and ambitions to go public by FY27, RentoMojo’s journey raises an important question—does this business model make for a strong investment option?
In this article, we’ll look at RentoMojo’s financials, IPO strategy, opportunities, and risks to see if it is worth watching.
Credits: Inc42
Funding Journey and Backing from Top Investors
Since its inception, RentoMojo has raised nearly INR 400 crore (about $45.3 million). The startup has attracted marquee investors like Accel, Chiratae Ventures, and Bain Capital, lending credibility to its growth story. Such strong backers provide not just capital but also strategic expertise to scale operations in a relatively young market.
The funds have helped the company expand its footprint to 65 physical stores across 22 cities, deploy over 7.5 lakh products, and strengthen its logistics and refurbishment infrastructure.
Financial Performance: Signs of Profitability
Unlike many startups struggling to break even, RentoMojo has reported consistent profits in recent years.
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FY24: Net profit of ₹22.1 crore
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FY25: Profit surged 82% to ₹40 crore
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EBITDA: Grew 40% year-on-year to ₹92 crore in FY25
These numbers suggest that RentoMojo is moving toward sustainable growth. However, it’s worth noting that audited financials for FY25 are yet to be filed, which investors will be keenly awaiting.
IPO Roadmap: Targeting FY27
RentoMojo has officially started preparing for its IPO. The company has onboarded IIFL and Motilal Oswal as book-running lead managers to handle documentation, marketing, and investor relations.
The company’s IPO timeline aims for FY27 (April 2026–March 2027). But before it can list, two critical steps are pending:
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Conversion into a public entity – RentoMojo still operates as a private limited company.
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Filing audited FY25 financial statements – essential to build investor trust.
If executed well, the IPO could provide the capital needed for deeper market penetration and operational expansion.
Market Challenges: A Nascent and Risky Industry
While RentoMojo has shown encouraging financials, the furniture rental industry in India is still evolving and comes with several challenges:
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Limited demand: Renting furniture is common in metro cities with migrant populations, but adoption in smaller towns is minimal.
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Cultural mindset: Indians typically prefer buying furniture outright or on EMI rather than renting.
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High operational costs: Delivery, pickup, refurbishment, and maintenance eat into margins.
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Thin profitability: Scaling profits in this business is tough compared to e-commerce or fintech models.
The cautionary tale here is Furlenco, a direct competitor founded in 2012. Despite years in the business, its revenue fell 10% in FY24, dropping from ₹155.8 crore in FY23 to ₹140 crore. High refurbishment and operational expenses continue to weigh it down—signaling the risks RentoMojo might face.
Growth Opportunities
On the flip side, RentoMojo could benefit from shifting urban lifestyles. With rising job mobility, short-term housing, and millennial consumer behavior, the demand for flexible solutions like renting may increase. Expanding beyond metros into Tier-2 cities could unlock a significant new customer base.
Additionally, diversification into appliances, electronics, and office furniture rentals provides multiple growth levers beyond just household furniture.
Credits: Inc42
Should You Invest in RentoMojo’s IPO?
RentoMojo’s financial turnaround and profitability make it more attractive than some loss-making startups that have gone public in recent years. However, the risks remain high, especially given the fragile unit economics of the rental furniture industry.
For conservative investors, this IPO may look too volatile. But for risk-takers willing to bet on India’s evolving consumption patterns, RentoMojo could be an interesting long-term play.
