Backed by leading investors such as Accel, Edelweiss, ValueQuest, and Chiratae Ventures, Rentomojo filed its draft red herring prospectus with the Securities and Exchange Board of India on March 27 to raise funds through an initial public offering (IPO).
The Bengaluru-based company plans to raise Rs 150 crore through a fresh issue of shares. In addition, existing investors will offload up to 2.83 crore equity shares via an offer-for-sale (OFS). Notably, shareholders such as Accel India, Edelweiss Discovery Fund, ValueQuest, Madison India, Chiratae Ventures, GMO Payment Gateway, and promoter Geetansh Bamania will participate in the OFS.
Furthermore, the company may raise up to Rs 30 crore in a pre-IPO round as part of the fresh issue component. Currently, promoters hold a 21.51 percent stake in Rentomojo, while public shareholders own 73.66 percent. Meanwhile, employee trusts account for the remaining 4.83 percent stake.
Among public investors, Accel India IV (Mauritius) holds the largest share at 20.92 percent. It is followed by Edelweiss Discovery Fund with 10.53 percent, Chiratae Ventures with 10.28 percent, and ValueQuest with 8.92 percent.
Rentomojo operates a direct-to-consumer online rental and subscription platform for furniture and appliances across India. The company intends to utilize Rs 70 crore from the net proceeds of the fresh issue to repay certain outstanding borrowings. Specifically, it will allocate Rs 42.5 crore towards lease rentals and license fees for warehouses and experience stores, while the remaining funds will support general corporate purposes.
As of January 2026, Rentomojo reported total outstanding borrowings of Rs 179.5 crore on a consolidated basis. At the same time, analysts estimate the broader home furniture and appliances rental market in India at Rs 69,520 crore in CY2025 and project it to grow at a CAGR of approximately 11 percent to reach Rs 1,17,210 crore by CY2030.
On the financial front, the company has demonstrated strong growth momentum. It reported a 92.3 percent increase in profit to Rs 43.1 crore for the financial year ended March 2025, compared to Rs 22.4 crore in the previous year. Additionally, revenue rose 38 percent to Rs 266 crore from Rs 192.7 crore during the same period.
Moreover, for the six-month period ended September 2025, Rentomojo posted a profit of Rs 61.3 crore on revenue of Rs 176.6 crore, further underlining its improving financial performance.
To manage the IPO process, Rentomojo has appointed Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services as merchant bankers.
Rentomojo’s IPO move reflects its intent to strengthen its balance sheet and accelerate growth in a rapidly expanding rental market. With solid financial performance and strong investor backing, the company is well positioned to capitalize on the rising demand for flexible and affordable home solutions in India.
