The Bengaluru-based furniture and appliance rental platform, Rentomojo, has officially filed its Draft Red Herring Prospectus (DRHP) with SEBI to launch an Initial Public Offering. The move comes as the company continues to dominate the organized rental market in India with a reported market share of nearly 47% in its core categories.
Key IPO Details
The offering is a mix of a fresh capital infusion and an exit for early investors:
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Fresh Issue: New equity shares worth up to ₹150 crore.
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Offer for Sale (OFS): Approximately 2.84 crore (28.4 million) existing shares will be sold by promoters and marquee investors including Accel India, Chiratae Ventures, and Bain Capital.
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Listing: The company intends to list on both the BSE and NSE.
Financial Growth & Performance
Rentomojo has demonstrated a strong path to profitability, making it a notable entry in the upcoming IPO calendar:
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Revenue Growth: For the full year FY25, the company reported a revenue of ₹266 crore.
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Surging Profits: Net profit for FY25 hit ₹43.11 crore, a massive 92% increase year-on-year.
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User Base: As of late 2025, the platform boasts over 2.27 lakh live subscribers across 22 Indian cities.
Strategic Use of Funds
The ₹150 crore raised through the fresh issue is earmarked for three primary objectives:
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Debt Reduction: Approximately ₹70 crore will be used to prepay or repay outstanding borrowings to lean out the balance sheet.
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Expansion: Roughly ₹42.5 crore is designated for lease rentals and licensing fees for its network of warehouses and 67 experience stores.
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General Corporate Purposes: The remainder will support daily operations and strategic initiatives.
Market Context
The IPO filing arrives at a time when the “subscription economy” is gaining significant traction in urban India. Rentomojo’s pivot toward profitability—a rarity among high-growth tech startups—is expected to be a key selling point for institutional investors.
