Rentomojo’s ₹150 crore IPO plan hit by legal challenge from former co-founder, seeks NCLT intervention

Furniture rental platform Rentomojo’s IPO plans may face a legal hurdle after co-founder and former COO Ajay Nain moved the National Company Law Tribunal (NCLT) in Bengaluru, alleging oppression and mismanagement, and seeking to restrain the proposed public issue, according to its DRHP.

The petition, filed on March 25, seeks to halt the company’s proposed ₹150 crore fresh issue. The matter is yet to be listed for hearing. As a pre-emptive measure, Rentomojo said it has filed caveats before the tribunal and other appropriate forums.

The dispute pertains to a 2023 transaction in which Nain sold 2,223 equity shares, representing about 9.41 per cent of the company at the time, to the RM Employee Benefit Trust.

Rentomojo filed its DRHP on Saturday, outlining a ₹150 crore primary raise alongside an offer-for-sale (OFS) of up to 2.84 crore equity shares by existing investors.

The OFS includes shareholders such as Accel India IV (Mauritius) Limited, Edelweiss Discovery Fund - Series I, ValueQuest S.C.A.L.E. Fund, Madison India Opportunities V VCC, Geetansh Bamania, Chiratae Growth Fund - I, IDG Ventures India Fund III LLC, GMO Payment Gateway Inc., Chiratae Trust, and GMO GFF Limited Partnership.

The book-running lead managers of the issue are Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services, while KFin Technologies is the registrar.

Proceeds from the fresh issue will be used to repay or prepay outstanding borrowings, meet lease rental or licence fee obligations for warehouses and experience stores, and for general corporate purposes.

The company reported revenue of ₹272 crore in FY25, up 39 per cent year-on-year, while profit rose 92 per cent to ₹43.1 crore, as per market intelligence platform Tracxn.

Published on March 30, 2026