BENGALURU: Furniture rental firm Rentomojo is generating enough cash from operations to fund the capital expenditure required to expand its inventory, marking a significant shift for a business that has historically needed external capital to finance growth, the company’s top executive told Mint.
“The biggest constraint was not the supply of furniture and appliances, but the capital needed to finance them,” managing director and chief executive officer Geetansh Bamania said in an interview. “Now we are generating enough accruals ourselves to fund our own growth.”
Rentomojo generated ₹172.9 crore in net cash from operating activities in FY26, while purchases of property, plant and equipment—including capital advances and capital creditors—stood at ₹175.8 crore, according to documents filed with the regulator ahead of a planned listing. The company treats purchases of furniture and appliances for rental as capital expenditure.
Rentomojo’s ₹1,255.57 crore initial public offering will open on 9 September and close on 11 September, with a price band of ₹384-404 a share. It comprises a fresh issue of shares for ₹150 crore and an offer for sale of shares worth ₹1,105.57 crore. Existing investors Accel India, Edelweiss Discovery Fund, ValueQuest, Madison India, Chiratae Ventures and GMO, along with promoter Bamania, are expected to sell shares.
The fresh issue proceeds are earmarked largely for debt repayment and lease-related expenses.
According to Redseer, the home furniture and appliances rental market was ₹1,550 crore in 2025 and is expected to reach ₹6,030 crore by 2030. Companies in the sector have found it difficult to scale profitably. Rentomojo’s biggest rival Furlenco was acquired by Sheela Foam in 2023 after facing funding and operational challenges. Rentomojo is now taking the category public.
“We had to create the market. There was no market to begin with,” Bamania said, referring to Rentomojo’s early years of investing and educating customers about furniture and appliance rentals.
Easing asset constraints
Rentomojo’s profitability has strengthened alongside its scale. Revenue from operations rose 45.5% to ₹386.99 crore in FY26, while profit after tax more than doubled to ₹104.3 crore from ₹43.1 crore a year earlier.
Rentomojo has been profitable for four consecutive years, with profit after tax rising from ₹4.4 crore in FY23 to ₹22.4 crore in FY24 and ₹43.1 crore in FY25.
Bamania said the company spent its early years building the rental market and accepting losses while accumulating a large asset base. The economics, he said, improve as those assets remain in circulation across multiple rental cycles.
“We knew that we had to reach a stage where the company would turn profitable and the older cohorts would see maturity,” he said. “Some of our older assets have delivered close to about four times the revenue.”
Rentomojo’s older furniture and appliances continue to generate revenue, with the management estimating a useful life of about 10 years. As of March, 56.12% of its FY17 cohort and 60.92% of its FY18 cohort were still generating revenue, according to its prospectus.
Asset reuse is central to the company’s model, according to Bamania. Products are returned, refurbished and redeployed rather than retired after a single customer cycle. Rentomojo had 851,184 live items at the end of FY26, with an occupancy rate of 83.34%, its IPO documents showed.
Bamania said Rentomojo’s profitability has also helped restore lender confidence.
“What used to be the biggest constraint was lender sentiment. Today, we are strongly placed,” Bamania said.
Difficult business
Despite improved cash generation, Rentomojo remains asset-heavy and an operationally complex business, which could act as a barrier to new entrants.
“This is a super difficult business to get in,” he said, pointing to the combination of subscription management, annual capex, collections, asset recovery, refurbishment, warehouses and logistics. “It’s almost like four or five businesses together.”
While new markets such as Lucknow and Indore have been scaling up, the larger opportunity remains deeper penetration in cities where the company already operates and in subscriber additions.
“There’s huge headroom. This is almost like a decadal business,” Bamania said, pointing to the large base of rental apartments and the still-low penetration of furniture and appliance rentals.