RentoMojo Sets Sights on IPO Amid Changing Furniture Rental Landscape

The Indian startup ecosystem is buzzing with IPO ambitions. Over the past two years, companies across fintech, e-commerce, and SaaS have tapped public markets, testing both investor appetite and business resilience. Now, joining the wave of IPO-bound startups is RentoMojo, a Bengaluru-headquartered furniture and consumer appliance rental platform backed by Accel, Chiratae Ventures, and Bain Capital.

According to people aware of the matter, RentoMojo has begun preparing for its initial public offering (IPO) and has already roped in IIFL and Motilal Oswal as book running lead managers. While the startup is targeting a listing by FY27, the process is still at a very early stage—it has yet to transition into a public entity and file its complete FY25 financial statements, the mandatory prerequisites for any domestic listing.

From Startup Hustle to Profitability

What makes RentoMojo’s IPO move stand out is its financial trajectory. Unlike many consumer-tech peers still struggling to stem losses, RentoMojo has shown a sharp improvement in profitability.

• Its net profit surged 82%, reaching INR 40 Cr in FY25, up from INR 22.1 Cr in FY24, as per provisional figures.

• The company’s EBITDA climbed 40% YoY, touching INR 92 Cr in FY25.

These numbers suggest the company is trying to position itself as a rare rental-economy player that has found a pathway to scale with discipline, in an otherwise challenging market.

A Decade of Building

Founded in 2014 by Geetansh Bamania and Ajay Nain, RentoMojo began with a simple proposition—make furniture and home appliances affordable and accessible without forcing people into heavy upfront spends. Over the years, the company has expanded across 22 cities, set up 65 physical stores, and claims an active subscriber base of 2.2 lakh with over 7.5 lakh products deployed.

Backed by marquee investors, the startup has raised nearly INR 400 Cr ($45.3 Mn) to date. Its cap table includes global heavyweights like Accel, Chiratae Ventures, and Bain Capital, all of whom will be closely watching the IPO journey as a potential exit opportunity.

A Sector Facing Headwinds

While RentoMojo’s numbers are promising, the road ahead is anything but smooth. India’s furniture rental sector, once touted as a millennial-driven growth story, has been struggling with muted demand in recent years.

• Changing consumer behavior: With easy EMIs and buy-now-pay-later options, many urban consumers now prefer buying furniture over renting.

• Operational challenges: High logistics and refurbishment costs, coupled with concerns over product quality and service reliability, have dented customer trust.

• Thin margins: The sector has long grappled with intense competition and a lack of pricing power, making it difficult to scale profitably.

RentoMojo’s closest rival Furlenco reflects these struggles. In FY24, Furlenco’s operating revenue fell 10% to INR 140 Cr, while its losses widened to nearly INR 130 Cr, up 2% year-on-year. Players like Rentickle and Cityfurnish are also battling similar challenges.

What Makes RentoMojo Different?

Despite the sector’s headwinds, RentoMojo seems to have cracked parts of the puzzle—leaning on a hybrid model of online reach plus offline stores, a focus on profitability, and a subscriber-driven approach rather than just one-time rentals. Its sustained profitability could help it stand out in public markets, where investors are increasingly wary of growth-at-all-costs models.

If successful, its IPO may also serve as a litmus test for the rental economy in India. Can a sector plagued with structural challenges win back investor confidence? Or will RentoMojo remain an outlier in an otherwise struggling category?

The Road to FY27

For now, RentoMojo’s IPO timeline gives it breathing space. With FY27 as the target, the company has at least two years to strengthen its financials, streamline compliance, and convince investors that the rental model can still thrive in India.

The startup’s next big milestones will be:

• Completing its conversion into a public entity.

• Filing audited FY25 results.

• Building a strong equity story for public markets.

As the startup ecosystem continues to mature, all eyes will be on how RentoMojo navigates its transition—from a venture-backed player to a publicly traded company in a tough sector.