Rentomojo Receives SEBI Approval For IPO, Plans ₹150 Crore Fresh Issue

Rentomojo's initial public offering (IPO) plans have moved a step forward after the company received approval from the Securities and Exchange Board of India (SEBI).

The public issue can now proceed through the next stages of the listing process. Details on the launch timeline are yet to be announced.

The Rentomojo IPO includes a fresh issue of equity shares worth up to ₹150 crore and an offer for sale (OFS) of up to 2.84 crore shares by existing shareholders.

The company may also undertake a pre-IPO placement of up to ₹30 crore. If that happens, the size of the fresh issue will be reduced accordingly.

How Does Rentomojo Plan To Use The Fresh Capital?

• A part of the funds raised through the fresh issue will go towards reducing outstanding debt.

• The company also plans to use the proceeds for lease rentals and licence fees linked to its warehouses and experience stores.

• The remaining amount will be deployed for general corporate purposes.

The OFS will see several existing investors pare their holdings, including Accel India IV (Mauritius), Edelweiss Discovery Fund, ValueQuest S.C.A.L.E. Fund, Madison India Opportunities, Chiratae Ventures, GMO VenturePartners and promoter Geetansh Bamania.

How Large Is Rentomojo's Rental Platform?

Rentomojo's business is centred on renting furniture and home appliances through a subscription-based model.

The company estimates that it accounted for 42%-47% of India's organised furniture and appliance rental market in FY25, excluding water purifiers.

By September 2025, it was serving 227,511 subscribers across 22 cities. Its operations were supported by 21 warehouses spread over about 4.44 lakh square feet and a network of 67 experience stores. The company offered 728,773 live products through its omnichannel platform at the end of the period.

Occupancy levels remained above 80% over the last several years. The figure stood at 83.91% in the first half of FY26, compared with 82.82% in FY25, 86.43% in FY24 and 91.07% in FY23.

What Do The Numbers And Legal Proceedings Reveal?

The company reported revenue of ₹176.6 crore and profit of ₹61.4 crore for the six months ended September 2025.

For the full FY25 financial year, revenue was ₹266 crore, and profit after tax stood at ₹43.1 crore.

Separately, former co-founder Ajay Nain has challenged the company's IPO plans before the NCLT in Bengaluru. He has sought an order restraining Rentomojo from proceeding with the public issue. He has alleged that he was misled into selling his 9.41% stake in 2023 and has sought restoration of his shareholding.

According to the draft papers, Rentomojo has filed caveats to ensure that no order is passed without hearing the company's submissions. The matter is yet to be heard.

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