Furniture and appliance rental platform Rentomojo plans to file its draft red herring prospectus (DRHP) with Sebi by mid-2025, founder Geetansh Bamania said. The company is evaluating the size and timeline of the proposed IPO, a process expected to take several months.
Rentomojo reported a sharp turnaround in FY24, with profits rising to Rs 22.1 crore from Rs 6.2 crore in FY23 and revenue jumping 59% to Rs 195.8 crore. Bamania credited the success to operational efficiency and technology adoption, with 70-75% of customer queries now receiving automated approvals compared to 30% earlier.
The company expects 40% revenue growth in FY25 and aims to double profits. “We anticipate closing FY25 with an Ebitda of Rs 100 crore and profits of Rs 40 crore,” Bamania said.
Rentomojo’s revenue is evenly split between furniture and appliance rentals, with an 85% inventory occupancy rate and gross margins exceeding 60%. Operating 20 warehouses nationwide, the company partners with third-party logistics for deliveries and offers free relocation services.
The platform’s subscription model addresses a gap in affordability, Bamania explained. “Furnishing a 1BHK costs around Rs 2 lakh, which is five to six times the average monthly salary of Rs 30,000-40,000. With frequent job changes, a subscription model offers flexibility and affordability over credit or EMI options”.
Rentomojo’s performance contrasts with competitor Furlenco, which saw losses widen to Rs 130.2 crore in FY24 while revenue declined to Rs 151.9 crore.
The company is open to pre-IPO funding, with substantial interest from investors. Existing investors, including Chiratae Ventures (22.3%), Accel (20.5%), and Bain Capital Ventures (6.8%), may participate further. Rentomojo has raised $93.2 million to date, with its latest funding round in February 2024 valuing it at $110 million, down from $198 million in 2021.
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