IPO Alert: Rentomojo Files Draft Paper with SEBI for IPO Worth ₹1,100-1,200 Crore

Rentomojo, the Bengaluru-based furniture and electronics rental startup, has submitted a draft red herring prospectus (DRHP) for a ₹1,100-1,200 crore initial public offering (IPO) to the Securities and Exchange Board of India. 

Details of the Proposed IPO 

The IPO comprises a fresh issuance of equity amounting to ₹150 crore, while the remaining shares will be offloaded by current shareholders.  

Significant early investors planning to sell include Accel, Chiratae Ventures, and Edelweiss Financial Services, alongside Rentomojo's founder, Geetansh Bamania, who holds just over 14% of the company. 

Utilisation of Raised Funds 

Rentomojo plans to allocate ₹70 crore from the IPO's primary share sale to reduce existing debt.  

Moreover, ₹42.5 crore will be used to cover lease rental payments for warehouses and offline experience centres. The remaining funds are intended for general corporate expenditures. 

Company Financial Performance 

Founded in 2014, Rentomojo reported operating revenue of ₹177 crore for the six months ending September 2025.  

It achieved net profitability, posting a net profit of ₹61 crore, inclusive of a deferred tax credit of ₹33 crore.  

Prior funding raised by the company amounts to approximately ₹400 crore, with the latest round led by Edelweiss in February 2024 valuing the firm at ₹850-900 crore. 

Read More: IPO Alert: Trenzet Infra Files Draft Papers with SEBI to Raise Funds for Expansion! 

Market Opportunity and Strategic Context 

Rentomojo estimated the total addressable market for home furniture and appliance rentals at ₹69,520 crore as of 2025.  

This reflects the significant opportunities presented by urban mobility, rising disposable incomes, and a cultural shift towards asset-light consumption models. 

Past Challenges and Strategic Adjustments 

After experiencing operational disruptions during the COVID-19 pandemic, Rentomojo successfully navigated significant strategic adjustments.  

It has now emerged as a profitable entity in its field, even as the segment witnessed the consolidation of players, including the acquisition of rival Furlenco by Sheela Foam. 

Conclusion 

Rentomojo's draft categorises the intended IPO as a strategic step to bolster its financial position and expand operations. With a robust historical financial performance, the company appears poised to capitalise on the burgeoning rental market in India. 

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