Rentomojo, a furniture and electronics rental platform, recorded almost Rs 200 crore in operating revenue last fiscal year. The Bengaluru-based company grew as more people returned to workplaces after the pandemic.
According to its financial filings with the Registrar of Companies, the company’s operating revenue increased by 60%, reaching Rs 193 crore in FY24.
Rentomojo’s net profit jumped over threefold to Rs 22 crore last fiscal, up from Rs 6 crore in FY23, due to controlled expense growth. The company also posted Rs 65 crore in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year.
Founder and CEO Geetansh Bamania said Rentomojo focused on automation in FY24, leading to significant cost savings. The company is now preparing to file for an initial public offering (IPO) within the next 18 months.
“We’ve scaled rapidly by leveraging automation in a very high operationally intensive business and disciplined cost management, enabling sustainable growth and increased profitability,” he said.
“The first thing that we dabbled on was there used to be a manual team that used to sit and verify these consumers. Slowly and gradually, that’s now completely automated and happens in a minute,” Bamania added.
Founded in 2015 by Bamania and Ajay Nain, Rentomojo operates in 19 cities with around 30 offline stores. Nain left the company in 2018. For FY25, Rentomojo aims for a 40-50% profit growth, according to Bamania.
“We are actually on a very good momentum this year. It should continue on the same lines as last year itself; our Ebitda and net profit should very much grow by about 40-50%,” he said.
On February 21, Bengaluru-based Rentomojo secured Rs 210 crore in a late-stage funding round. Edelweiss Discovery led this investment.
By March 31, the company reported an 84% occupancy rate. This means that 84 out of every 100 products were rented out to customers. As of the end of FY24, Rentomojo had nearly 400,000 items available, up from 291,000 the previous year.
In July 2023, Rentomojo’s top competitor, Furlenco, was acquired by Sheela Foam. Sheela Foam is well-known for owning the popular mattress brand Sleepwell.
