Rentomojo files draft prospectus with Sebi for Rs 1,100

Synopsis

In the OFS segment of the IPO, early and institutional investors, Accel, Chiratae Ventures, and Edelweiss Financial Services, along with founder and chief executive Geetansh Bamania, will sell their stakes. The furniture and home electronics rental startup, which was valued at Rs 850-900 crore in February 2024, will utilise Rs 70 crore of the primary proceeds for repayment of certain debt and Rs 42.5 crore for lease rental payments for its warehouses and offline experience centres.

Furniture and home electronics rental startup Rentomojo has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) of Rs 1,100-1,200 crore. The proposed issue includes a fresh issue of Rs 150 crore, with the remainder comprising an offer-for-sale (OFS) by shareholders.

The OFS component will see early and institutional investors such as Accel, Chiratae Ventures, and Edelweiss Financial Services pare stakes, along with founder and chief executive Geetansh Bamania. Bamania, who is classified as a promoter of the Bengaluru-based company, currently holds a little over 14% stake.

According to the DRHP, Rentomojo plans to utilise Rs 70 crore from the primary proceeds towards repayment of certain debt. A further Rs 42.5 crore will be allocated towards lease rental payments for its warehouses and offline experience centres, with the remaining funds earmarked for general corporate purposes.

The company has raised about Rs 400 crore from private investors to date. Its most recent funding round came in February 2024, when it secured Rs 210 crore led by Edelweiss, valuing the company at approximately Rs 850-900 crore at the time.

For the six months ended September 2025, Rentomojo reported operating revenue of Rs 177 crore. It posted a net profit of Rs 61 crore during the period, although this included a deferred tax credit of Rs 33 crore. On a pre-tax basis, profit stood at Rs 28 crore. The company has reported net profitability over each of the past three financial years.

Rentomojo, which won the Comeback Kid prize at the ET Startup Awards 2024, saw significant operational disruption during the Covid-19 pandemic, a period that forced a reset of its business model. It has since emerged as a profitable player in the segment. In FY25, the company reported revenue of Rs 266 crore, marking a 38% year-on-year (YoY) increase.

The IPO is being managed by merchant bankers Motilal Oswal Financial Services, Axis Capital, and IIFL Capital Services.

Founded in 2014, Rentomojo operates in a category that saw a proliferation of startups in its early years. However, consolidation followed, with several players shutting down or being acquired. In July 2023, rival Furlenco was acquired by Sheela Foam, which owns the Sleepwell brand. In 2025, Furlenco raised Rs 125 crore from Sheela Foam, with participation from asset management firm White Oak Capital and market investor Madhu Kela. Furlenco is also preparing for a public listing.

In its prospectus, Rentomojo estimated the total addressable market for the home furniture and appliances rental segment at Rs 69,520 crore as of 2025, highlighting the scale of opportunity in a category driven by urban mobility, rising disposable incomes, and a shift towards asset-light consumption.

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