RentoMojo IPO: DRHP Submitted For ₹150 Crore Fresh Issue

RentoMojo, a rental business in the furniture and appliance space, filed its draft papers with the Securities and Exchange Board of India (SEBI) on 27 March 2026 for a ₹150 crore initial public offering (IPO) through a fresh issue. The price band and listing dates have not been announced yet.

Over time, the company has built its presence around the demand for flexible access to furniture and household essentials, particularly in urban markets. As it moves ahead with its listing plans, what can investors really take away from this IPO?

How Is RentoMojo Structuring Its IPO?

The IPO consists of a fresh issue of ₹150 crore, along with an offer for sale of 28,399,567 shares by existing shareholders. The final number of shares in the fresh issue and the total size of the offer for sale will depend on the price band, which will be decided through the book-building process.

As usual, the proceeds from the offer for sale will go to the selling shareholders after adjusting for taxes and issue-related expenses.

From the fresh issue, ₹70 crore is planned for the repayment of borrowings, including interest. Another ₹42.5 crore will be used towards lease rentals and license fees for warehouses and experience stores. The remaining amount will be allocated for general corporate purposes.

What Is RentoMojo’s Business And Scale?

RentoMojo operates in the furniture and appliance rental space, where products such as gadgets and household items are offered on a subscription basis, with maintenance and product swap options included during the rental period.

The company, set up in 2014 by Geetansh Bamania in Bengaluru, has built a presence across cities over time and today runs more than 70 stores in India, covering markets like Mumbai, Delhi, Chennai, Pune, Hyderabad, Gurgaon and Noida. Investors in the company include Accel, Chiratae Ventures and Bain Capital.

On the financial front, the company’s revenue has seen growth in the last two years, moving up about 60% in FY24, followed by another 38% increase in FY25.

Profit growth has been sharper. It rose more than four times in FY24 on a year-on-year basis, and then saw a further jump of around 92% in FY25.

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What Are The Key Strengths And Risks Investors Should Watch?

Like most subscription-led businesses, the model brings both stability and certain dependencies.

RentoMojo’s business largely runs on rentals, with subscriptions forming most of the revenue. That does bring some visibility to cash flows, especially with tenures in the 17–19 month range. Scale plays a role, too, along with the ability to use the same assets across multiple cycles, which helps margins hold up. The company remains founder-led, with the same core team involved over the years.

That said, this model also makes the business sensitive to demand in this segment. Rentals contribute over 95% of revenue, so any shift here tends to show up quickly. Growth in this business is closely tied to how well the company is able to add new users and retain them.

There are a few operational dependencies, too. Sourcing relies on external vendors, while deliveries run through third-party partners, leaving room for delays, cost pressures and occasional supply issues. Additionally, a large share of demand comes from tier-1 cities, so exposure remains tilted towards these markets.

Overall, this is still an evolving space in India, where demand tends to move with how people shift across cities and how their spending behaviour changes over time.

For investors, recurring subscription income and scale do stand out. At the same time, business growth will depend on user acquisition, managing costs and keeping utilisation of assets efficient.

Source:

DRHP