Rentomojo IPO

    Summary:


    Rentomojo Limited is a technology-enabled rental business that allows customers to rent furniture, home appliances, electronics and other lifestyle products on subscription plans. The company combines digital capabilities with shipping, refurbishment and customer support services, providing a different path to traditional product ownership. 

    The company has built a fully integrated operational model covering sourcing, warehousing, delivery, installation, maintenance, refurbishment and product returns. Its subscription-based recurring revenue model allows it to accommodate customers who want short-term or flexible access to home supplies. The organised rental market in India continues to evolve as consumer tastes shift towards access-based consumption and digital subscription models. 

    Companies in this field are also faced with risks in inventory management, consumer demand, logistics, IT infrastructure, asset utilisation and competitive pressures.

    India’s furniture and appliance rental sector has grown hand-in-hand with evolving customer preferences, greater urbanisation and the sharing economy. Access-based consumption over product ownership is becoming the choice for young professionals, students and mobile households. The organised rental market has expanded as renting furniture, appliances and other lifestyle products has become easier using digital platforms, according to the Draft Red Herring Prospectus (DRHP).

    Rentomojo Limited has submitted its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO). The company is a technology-enabled rental platform that enables users to rent furniture, home appliances, electronics and related products on flexible subscription models. It also offers value-added services designed to enhance the customer experience throughout the rental lifecycle.

    For investors seeking to understand the company’s operations, financial performance, industry position, and business risks, the DRHP provides insights into its business model and proposed utilisation of the IPO proceeds. This article presents the key information in a simple and easy-to-understand format.

    IPO Details

    The table below highlights the key details of the public issue available in the DRHP, while certain information such as the price band, lot size and issue dates is yet to be announced.

    Particulars

    Details

    IPO Type

    Book Built Issue

    IPO Open Date

    To be announced

    IPO Close Date

    To be announced

    Face Value

    ₹1 per equity share

    Price Band

    To be announced

    Lot Size

    To be announced

    Fresh Issue

    Equity shares aggregating up to ₹150 crore

    Offer for Sale

    Up to 2,83,99,567 equity shares

    Total Issue Size

    Fresh Issue of up to ₹150 crore plus Offer for Sale of up to 2,83,99,567 equity shares

    Listing Exchange

    NSE and BSE

    The IPO consists of both a Fresh Issue and an Offer for Sale (OFS).

    Under the Fresh Issue portion, the company will receive the proceeds from the issue. According to the DRHP, the company may also consider a pre-IPO placement of up to ₹30 crore before filing the Red Herring Prospectus, subject to applicable regulations. The proceeds from the Offer for Sale will accrue to the respective selling shareholders and not to the company.

    The final issue size in rupee terms, price band, lot size, and subscription dates will be announced closer to the opening of the public issue.

    About the Company

    Company Background

    Rentomojo Limited was originally incorporated in April 2012 as Edunetwork Private Limited.The company was originally incorporated in April 2012 as Edunetwork Private Limited. It changed its name to Rentomojo Private Limited in October 2025 and was converted into a public limited company as Rentomojo Limited in February 2026. The company’s promoter is Geetansh Bamania, who also serves as its Managing Director and Chief Executive Officer.

    Business Overview

    Rentomojo is a digital platform where consumers can rent lifestyle products on a subscription basis instead of buying the products.

    Its product portfolio includes:

    • Furniture

    • Home appliances

    • Consumer electronics

    • Work-from-home equipment

    • Fitness products

    • Other household essentials

    Customers can choose flexible rental tenures and access products through an online platform supported by delivery, installation, maintenance, and return services.

    The company also conducts its business through its wholly owned subsidiary Liber Designs Private Limited, which supports some of its commercial operations.

    Revenue Model

    The company primarily generates revenue through recurring rental subscriptions paid by customers for the use of products over selected periods.

    It earns its revenue from the following sources:

    • Monthly rental subscriptions

    • Product replacement and upgrade services

    • Resale of previously rented products

    • Value-added service offerings

    • Other platform-related income

    Its technology-enabled platform and subscription-based approach allow customers to access products without making significant upfront purchases.

    Industry Position

    Rentomojo operates in India's organised furniture and appliance rental market through a technology-enabled rental platform. According to the industry report cited in the DRHP, the company was the largest technology-driven full-stack online rental platform in India by subscription revenue and live subscribers as of March 31, 2025 (excluding water purifiers). 

    It serves urban consumers seeking flexible access to furniture, appliances, electronics, and other household products through subscription-based rental plans. The company combines its digital platform with inventory management, refurbishment, warehousing, logistics, installation, maintenance, and product retrieval capabilities to support its operations across multiple cities. 

    Industry Overview

    India’s furniture and appliance rental market has grown alongside changing consumer behaviour, rapid urbanisation, and the increasing mobility of students and working professionals. Many consumers are choosing subscription-based models for the flexibility and lower upfront expenses instead of buying things altogether.

    As per market analysis in the DRHP, organised rental platforms have gained traction, led by growth in digital commerce, changing lifestyle preferences and increased need for temporary or flexible housing solutions. When consumers move for education or a job, they typically want access to furnishings and appliances without the long-term commitment of ownership.

    Technology-enabled rental companies usually handle the entire client journey, from product selection, delivery, installation, maintenance, refurbishing and product returns. These integrated service

    s enable recurring revenue models and provide additional client convenience.

    Key factors supporting the industry include:

    • Increasing urban migration and workforce mobility

    • Growing preference for subscription-based consumption

    • Rising adoption of digital platforms and online marketplaces

    • Demand for flexible furnishing solutions among students and young professionals

    • Expansion of rental offerings across furniture, appliances, electronics, and lifestyle products

    • Greater consumer focus on affordability and convenience

    • Increasing awareness of sustainable and circular consumption models

    At the same time, companies operating in this sector must effectively manage inventory, logistics, refurbishment, customer acquisition costs, and asset utilisation to support long-term operations.

    Company Financials

    The financial performance of Rentomojo Limited provides information on its operating scale and business development over recent reporting periods. The table below summarises key financial metrics based on the restated consolidated financial information disclosed in the DRHP.

    Financials (₹ crore)

    FY2025

    FY2024

    FY2023

    Assets

    449.87

    366.20

    178.96

    Total Income

    271.96

    195.80

    123.87

    Profit After Tax

    43.11

    22.41

    4.41

    EBITDA

    118.44

    78.15

    52.93

    Net Worth

    183.61

    139.61

    22.22

    Strengths of Rentomojo Limited

    1. Technology-driven rental platform

    The company operates an online platform that enables customers to subscribe to furniture, appliances, and other household products through flexible rental plans. Its technology infrastructure supports product discovery, order management, and customer servicing.

    2. Diversified product portfolio

    Rentomojo offers a broad range of products, including furniture, home appliances, electronics, fitness equipment, and work-from-home essentials. This allows it to cater to different customer needs across various life stages.

    3. Recurring subscription-based business model

    A significant portion of the company’s revenue is generated through recurring rental subscriptions. This model supports ongoing customer relationships throughout the rental period.

    4. Integrated operational capabilities

    The company manages multiple stages of the rental lifecycle, including procurement, refurbishment, warehousing, logistics, installation, maintenance, and product retrieval, enabling end-to-end service delivery.

    5. Presence in an evolving consumer segment

    The business operates in a market influenced by changing lifestyle preferences, increasing workforce mobility, and growing acceptance of access-based consumption, which has contributed to the expansion of organised rental platforms.

    Risks Associated with the Business

    Dependence on customer demand for rentals

    The company’s performance depends on continued consumer interest in renting products instead of purchasing them. Changes in customer preferences may affect demand.

    Asset management and utilisation risks

    As the business owns and rents physical products, effective inventory management, refurbishment, maintenance, and asset utilisation are important for operational efficiency.

    Competition from multiple business models

    The company competes with organised rental platforms as well as traditional retailers and online marketplaces offering outright product sales or alternative financing options.

    Logistics and operational challenges

    Timely delivery, installation, servicing, and collection of rented products require efficient logistics networks. Operational disruptions may affect customer experience.

    Dependence on technology infrastructure

    The platform relies on digital systems to manage customer interactions, subscriptions, payments, and inventory. Any technology-related disruptions or cybersecurity incidents could impact operations.

    Working capital requirements

    The management of working capital is a crucial element of the business, as continual investment in assets and operational infrastructure is necessary to support the maintenance of rental inventories and expansion into new markets.

    Key Things Investors May Consider

    Before evaluating the IPO, investors may consider the following factors:

    • The company’s subscription-based business model and its position in India’s organised furniture and appliance rental market.

    • Growth in its customer base and recurring revenue generated through rental subscriptions.

    • Wide range of its product portfolio in furniture, home appliances, electronics and lifestyle products.

    • Historical financial performance comprising trends of revenue, profitability and cash flows as revealed in the DRHP.

    • Possible use of proceeds of the Fresh Issue and its possible contribution to business operations and corporate needs.

    • The company’s technology platform, logistics capabilities, and inventory management processes.

    • Demand trends for flexible consumption models, especially among urban consumers, students and working professionals.

    • Inventory ownership risk, refurbishment expenses, customer acquisition, asset utilisation, working capital management.

    • Competition within the organised rental industry and from alternative ownership or financing models.

    Published Date : 14 Jul 2026

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    Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.


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    Content Partner - Dalal Street Investment Journal Wealth Advisory Private Limited



    This article is for educational purposes only and should not be considered investment advice. Market investments are subject to risks. DSIJ Wealth Advisory Private Limited is a SEBI-registered Research Analyst (Reg. No: INH000006396) and Investment Adviser (Reg. No: INA000001142). Please consult your financial adviser before investing. 

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