IPO-Bound Rentomojo’s FY25 Profits Surge 2x as Revenue Rises 37%

Rental furniture and appliances company Rentomojo reported a net profit of ₹43.07 crore in FY25, up 92% from ₹22.49 crore in FY24, as per news reports.  

In FY23, the company had recorded a profit of ₹6.2 crore and FY25 marked the 3rd consecutive year of profitability for the firm. 

Revenue and EBITDA Figures 

Revenue from operations increased 37% year-on-year to ₹265.96 crore in FY25. EBITDA stood at ₹118.41 crore, compared with ₹78.23 crore in the previous financial year.  

Between FY23 and FY25, net rental revenue grew at a compound annual growth rate of 48.24%. 

Asset Utilisation and Funding 

The company attributed improved margins to the continued use of older assets and lower borrowing levels. Assets purchased between 2017 and 2019 are fully paid for and remain in active circulation.  

Rentomojo stated that a larger share of asset purchases is now funded through internal cash flows. Return on capital employed for FY25 was reported at 25.1%. 

Customer Base and City Presence 

As of the end of FY25, Rentomojo had more than 2.2 lakh active subscribers and managed over 7.7 lakh rental items.  

Operations spanned 23 cities. The company expanded its offline network to 71 experience stores during the year, where customers can view refurbished furniture and appliances before subscribing. 

Rentomojo offers furniture, large home appliances and water purifiers on a rental basis. The water purifier category, added recently, has begun contributing to volumes alongside the core furniture and appliance segments. 

IPO-Related Developments 

According to news reports, Rentomojo has appointed IIFL Capital and Motilal Oswal Investment Banking as book-running lead managers for a potential initial public offering (IPO) in India. Discussions are at a preliminary stage. The company has not provided details on the size or timing of the proposed issue. 

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Conclusion 

FY25 saw higher profit, increased revenue and a stable operating base for Rentomojo, alongside early steps linked to a possible public market listing. 

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