Furniture rental platform Rentomojo has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to INR 150 crore through an initial public offering (IPO).
The IPO will be a pure fresh issue, with no Offer for Sale (OFS), signalling that existing investors are not exiting and remain confident in the company’s future growth.
Rentomojo IPO Details: ₹150 Crore Fresh Issue, No OFS
| IPO Component | Details |
|---|---|
| IPO Type | Fresh Issue Only |
| Issue Size | Up to ₹150 crore |
| OFS | None |
| Current Stage | DRHP Filed with SEBI |
The company plans to use the proceeds for expansion, technology upgrades, and general corporate needs.
Rentomojo Financial Performance: Revenue and Profit Growth
Rentomojo has shown a sharp improvement in financial performance over the past few years, moving from losses to profitability.
| Financial Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹271.96 Cr | ₹195.8 Cr | ₹123.28 Cr |
| EBITDA | ₹118.45 Cr | ₹78.15 Cr | ₹27.14 Cr |
| Net Profit | ₹43.11 Cr | ₹22.41 Cr | ₹6.2 Cr |
Key Financial Highlights:
- Revenue has more than doubled in two years
- Net profit has increased nearly 7x since FY23
- EBITDA has strengthened significantly, indicating better operational efficiency
This marks a major turnaround from earlier years when the company reported losses, especially between FY20 and FY22.
Assets Surge, Debt in Control: Rentomojo’s Financial Position
| Metric | FY25 | FY24 |
|---|---|---|
| Total Assets | ₹449.87 Cr | ₹366.2 Cr |
| Total Debt | ₹154.58 Cr | ₹147.22 Cr |
| Equity | ₹183.61 Cr | ₹139.61 Cr |
The company’s asset base has grown steadily, while debt levels remain moderate relative to its scale.
Rentomojo Shareholding Structure and Key Investors
The cap table reflects strong backing from institutional investors alongside founder ownership.
| Category | Holding (%) |
|---|---|
| Founders | 17.7% |
| Institutional Funds | 64.2% |
| Angels | 5.2% |
| ESOP Pool | 8.4% |
Key Investors
- Geetansh Bamania: 17.7%
- Accel: 20.3%
- Chiratae Ventures: 13.1%
- Edelweiss Asset Management: 10.2%
- ValueQuest: 8.7%
Investment Snapshot
| Metric | Amount (₹) |
|---|---|
| Total Investment Raised | 713.8 Cr |
| Realised Returns | 259.2 Cr |
| Unrealised Returns | 875.5 Cr |
Business Model: Rental Commerce Gains Traction
Founded in 2014, Rentomojo operates a subscription-based rental model for furniture, appliances, and electronics. It caters mainly to urban consumers seeking flexible and cost-effective living solutions.
Its model benefits from:
- Rising urban migration
- Increasing preference for access over ownership
- Recurring revenue streams
This positions the company differently from traditional e-commerce players.
IPO Timeline: What Happens Next
| Stage | Explanation |
|---|---|
| DRHP Filing | Submitted to SEBI |
| Review Process | SEBI evaluates disclosures |
| RHP Filing | Final prospectus |
| IPO Launch | Public subscription opens |
| Listing | Shares listed on exchanges |
The IPO launch timeline will depend on regulatory approvals and market conditions.
Why This IPO Matters
Rentomojo’s IPO reflects improving sentiment in India’s startup ecosystem. Its shift to profitability and strong revenue growth make it a notable candidate in the rental commerce space.
The absence of an OFS and strong institutional backing suggest long-term confidence in the business.
Final Take
Rentomojo enters the IPO market with improving financials, strong investor backing, and a scalable business model. Its successful transition to profitability could make it an attractive option for public market investors.
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