Rentomojo gets SEBI nod for raising funds through IPO launch. Details here

Furniture rental startup Rentomojo has received observations from market regulator SEBI for its proposed initial public offering (IPO), paving the way for the company to launch its public issue on Dalal Street.

The issue is largely dominated by an offer for sale (OFS) by existing shareholders, with a smaller primary component aimed at raising fresh capital for expansion. The IPO comprises a fresh issue of equity shares aggregating up to ₹150 crore and an offer for sale of up to 28,399,567 equity shares with a face value of ₹1 each.

Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services (formerly IIFL Securities) are the book-running lead managers to the issue.

The company proposes to utilise the net proceeds from the fresh issue towards the repayment or prepayment, in full or in part, of certain outstanding borrowings along with accrued interest, payment of lease rentals or licence fees for its warehouses and experience stores, and general corporate purposes.

The equity shares offered through the Red Herring Prospectus are proposed to be listed on both the BSE and the NSE.

About Rentomojo

Rentomojo, a Bengaluru-based furniture and appliance rental startup, operates a technology-driven, full-stack direct-to-consumer online rental and subscription platform for furniture and home appliances in India.

According to its draft papers, the company is the largest online rental and subscription platform in the country, with an estimated 42%-47% market share in the organised home furniture and appliances rental segment (excluding water purifiers) based on subscription revenue in FY25.

As of September 30, 2025, the company operated an omnichannel platform comprising its online interface and 67 experience stores across India, offering flexible subscription access to furniture and appliances through a portfolio of 728,773 live products.

The company follows an 11-touchpoint consumer lifecycle model—covering order placement, risk assessment, delivery, installation, monthly collections, relocation, repairs, upgrades, subscription contract transfers, reverse logistics and refunds. It has also demonstrated strong asset utilisation, with occupancy rates of 91.07% in FY23, 86.43% in FY24, 82.82% in FY25, and 83.91% during the six months ended September 30, 2025, supporting capital efficiency and predictable revenue generation.

On the financial front, revenue from operations stood at ₹176.61 crore for the six months ended September 30, 2025, and ₹265.96 crore in FY25. Restated profit after tax came in at ₹61.38 crore for the six-month period and ₹43.11 crore for FY25, according to the draft papers.

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