RentoMojo, Furniture Rental Startup is Gearing Up for an IPO in the Next 18 Months

RentoMojo, an online furniture rental startup, is purportedly planning to file for an IPO within the next 18 months, according to its founder and CEO, Geetansh Bamania.
According to an ET report, RentoMojo became profitable in FY23, setting it apart in a sector where many competitors have struggled to achieve sustainable unit economics.
“When Covid began in March 2020, we anticipated becoming profitable by October of that year. But because of this, it was pushed. And, rather than profitability, we were looking at a 15-20-day cash runway by December. At this time, we underwent layoffs, having previously managed by lowering compensation for senior management and the middle layer,” he told ET.

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It is worth noting that in early 2020, just when profitability was on the horizon, the pandemic presented significant obstacles for RentoMojo, forcing the company to pivot before finally reaching profitability. According to Bamania, this time created in the company a culture of long-term growth.
“Prior to Covid, the way the environment was, whenever (we were crunched), we were trying to chase the next round of financing. When we were up against the wall, we understood we had to tackle the situation ourselves, without relying on outside funding. That was a watershed point for us when we began pursuing all costs and overheads to reduce excess while still providing service and growth,” he added.

RentoMojo, founded in 2014 by Bamania, Achal Mittal, Ajay Nain, and Gautam Adukia, rents out consumer appliances, furniture, and other home furnishings via an app and website.
The Bengaluru-based firm claims to operate in 16 locations and have served approximately 4.5 lakh customers since its beginning. It also claims to have been profitable for the last ten quarters. It competes with Fabrento, Rentickle, Furlenco, and Cityfurnish.

According to Bamania, RentoMojo is expected to have generated INR 200 crore in sales and INR 22 crore in profit after tax in FY24. In FY23, the company generated a net profit of INR 6.2 crore compared to INR 121 crore in revenues.
The announcement comes months after media reported that online furniture rental business RentoMojo raised an unknown sum from ValueQuest Scale Fund in a Series D fundraising round. The investment consisted of a combination of main funding and secondary purchases for a minority ownership in the company.
RentoMojo raised INR 210 crore ($25 million) in its Series D and D1 rounds, which were headed by Edelweiss Discovery Fund Series – I.