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Bengaluru-based rental startup Rentomojo has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India, marking its entry into the public markets.
IPO Details
The proposed IPO will comprise a fresh issue of equity shares worth up to ₹150 crore, along with an offer for sale (OFS) of up to 2.84 crore shares by existing investors.
The overall issue size is expected to be significantly larger when including the OFS component, indicating partial exits for early backers.
Shareholding and Investors
Key shareholders participating in the OFS include:
- Accel
- Chiratae Ventures
- Edelweiss Discovery Fund
- ValueQuest
Accel remains one of the largest shareholders, alongside other institutional investors and the founders.
Business Overview
Founded in 2014, Rentomojo operates a furniture and appliance rental platform, offering subscription-based access to home essentials.
The company serves over 2.2 lakh active subscribers and manages 7.7 lakh+ rental assets across multiple cities with a strong omni-channel presence.
Financial Performance
Rentomojo has demonstrated strong financial improvement in recent years:
- FY25 revenue: ₹266 crore (up 38% YoY)
- FY25 net profit: ~₹43 crore (up 92% YoY)
- H1 FY26 revenue: ₹176.6 crore
- H1 FY26 profit: ₹61.3 crore
The company has raised over ₹650 crore in funding from investors across multiple rounds.
Use of Proceeds
The fresh capital raised will be used for:
- Debt repayment or prepayment
- Lease and operational expenses
- General corporate purposes
What It Signals
Rentomojo’s IPO reflects growing investor confidence in subscription-based consumer models in India, particularly in urban markets where asset-light consumption is gaining traction.
The listing also provides an exit route for early investors while enabling the company to strengthen its balance sheet and scale operations.
Source: https://entrackr.com/news/rentomojo-files-drhp-to-raise-rs-150-cr-via-fresh-issue-11429333
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