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.
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.
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.
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.
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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.
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.
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.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 30, 2026, 8:25 AM IST
Team Angel One
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