⚡ Quick Take (30-second read)
- Milestone: Rentomojo Private Ltd → Rentomojo Limited (public entity conversion complete)
- IPO Timeline: FY27 target (April 2026 – March 2027); bankers IIFL & Motilal Oswal onboarded
- Revenue: Rs 266 Cr in FY25 — up +38% YoY (3rd consecutive profitable year)
- Net Profit: Rs 43 Cr in FY25 — up +92% YoY; EBITDA Rs 118 Cr (+51% YoY)
- Why It Matters: Potential India’s first public listing by a furniture/appliance rental-tech startup
- Bull/Bear: ROCE 25.1% + 48% revenue CAGR vs undisclosed valuation & thin addressable market
Furniture and appliance rental platform Rentomojo has cleared the first formal hurdle for its planned IPO — converting from a private limited company to a public limited entity through a special shareholder resolution, with its board and shareholders approving the deletion of “Private” from its registered name, per regulatory filings accessed by Entrackr.
This corporate conversion, combined with IIFL and Motilal Oswal already on board as bankers, marks Rentomojo as one of the most advanced pre-DRHP IPO candidates in India’s consumer tech sector for FY27. With three consecutive profitable years, a 25.1% ROCE, and a 48.24% revenue CAGR between FY23 and FY25, the Bengaluru-based startup may well become India’s first rental-tech company to list on the bourses — a milestone that every founder in the subscription economy will be watching closely.
StartupFeed Insight
The big picture: Rentomojo’s flywheel is becoming visible in the numbers: assets bought years ago, now fully paid off, continue generating rental revenue. That’s the secret behind a 92% profit surge on only 38% revenue growth — and it gets structurally stronger as the asset base matures.
Bull case:
3rd consecutive profitable year with accelerating profit growth (+92% FY25 vs +82% FY24) — rare in Indian consumer startups approaching IPO
EBITDA margin of ~44.5% (Rs 118 Cr on Rs 266 Cr revenue) signals a capital-efficient, SaaS-like model — deserving a premium multiple
Bear case:
India’s furniture rental addressable market remains primarily tier-1 metro cities — revenue concentration risk is high and national scalability is unproven
Valuation undisclosed; at 10–15x revenue (Rs 266 Cr), implied market cap of Rs 2,660–3,990 Cr ($315–475 Mn) may face stiff investor scrutiny given no listed comparable
Our prediction: Rentomojo files its DRHP with SEBI by Q3 2026 (October–December 2026) and lists by February–March 2027, raising Rs 400–600 Cr via a mix of fresh issue and OFS — becoming India’s template for subscription-model consumer tech IPOs.
What Just Happened — And Why It Matters
In India, converting from a private limited company to a public limited company is the mandatory first step before filing a Draft Red Herring Prospectus (DRHP) with SEBI. The conversion requires a special resolution passed by the company’s board and shareholders, followed by approval from the Registrar of Companies. By completing this step, Rentomojo has formally unlocked its ability to accept public share subscriptions — a legal prerequisite for any stock exchange listing.
The timing is deliberate. Rentomojo onboarded IIFL and Motilal Oswal as book-running lead managers in September 2025. The public entity conversion in March 2026 follows approximately six months later — exactly the timeline investment bankers typically require to prepare DRHP-ready documentation, audited financials, and institutional investor roadshow materials.
The company’s registered entity was previously named “Edunetwork Pvt Ltd” before being rebranded to “RentoMojo Pvt Ltd” in October 2025 — and is now officially “Rentomojo Limited”. Each of these sequential steps — banker appointment → name change → public conversion — follows the classic Indian startup IPO preparation playbook.
Rentomojo: Company Snapshot
| Attribute | Details |
| Founded | 2014 |
| Founders | Geetansh Bamania (CEO) & Ajay Nain |
| Founder Background | Geetansh: IIT Madras → KPMG → Flipkart → Rentomojo |
| Headquarters | Bengaluru, Karnataka |
| Business Model | B2C subscription rental — furniture, appliances, water purifiers |
| Active Subscribers | 2.2 Lakh (220,000) |
| Rental Items Deployed | 7.7 Lakh (770,000) |
| Cities | 23 cities |
| Experience Stores | 71 physical stores |
| Revenue CAGR (FY23–FY25) | 48.24% |
| ROCE (FY25) | 25.1% |
| Profitability | 3rd consecutive profitable year (FY23, FY24, FY25) |
| IPO Bankers | IIFL Securities & Motilal Oswal (appointed Sep 2025) |
| IPO Target | FY27 (April 2026 – March 2027) |
Financial Performance
| Metric | FY22 | FY23 | FY24 | FY25 |
| Revenue (Rs Cr) | ~Rs 85 | ~Rs 121 | Rs 193 | Rs 266 |
| Revenue Growth YoY | — | ~+42% | +59% | +38% |
| Net Profit / Loss (Rs Cr) | Loss ~Rs 14 | Profit (FY23) | Rs 22.5 Cr | Rs 43 Cr |
| Net Profit Growth YoY | — | Turned profitable | +3.6x | +92% |
| EBITDA (Rs Cr) | — | — | Rs 78.23 | Rs 118.41 |
| EBITDA Growth | — | — | — | +51.4% YoY |
| EBITDA Margin | — | — | ~40.5% | ~44.5% |
| ROCE | — | — | — | 25.1% |
At current trajectory, Rentomojo is on track to cross Rs 350 Cr in revenue and Rs 70–80 Cr in net profit by FY26 — making it one of the few profitable consumer tech companies in India approaching its IPO without restructuring its business model. The flywheel is real: older assets, now fully depreciated and debt-free, continue to generate rental income at near-100% margin contribution.
Funding Journey
| Round | Year | Amount | Key Investors |
| Seed / Angel | 2015 | Early stage | Angel investors |
| Series A | 2016 | Undisclosed | Accel, Chiratae Ventures |
| Series B | 2017–18 | Undisclosed | Bain Capital Ventures |
| Series C | 2019–21 | Undisclosed | Existing investors |
| Series D (latest) | Feb 2024 | $25 Mn (Rs ~208 Cr) | Edelweiss Discovery Fund, ValueQuest S.C.A.L.E. Fund |
| Total Raised | — | Rs 650+ Cr ($58.4 Mn) | Accel, Chiratae, Bain Capital, Edelweiss, ValueQuest |
Rentomojo has been largely bootstrapped-to-profitability since its Series D in February 2024 — a 25-month gap between its last external funding and today’s IPO conversion. That gap signals the company does not need fresh capital to operate; the IPO is a liquidity and growth-acceleration event.
Competitive Landscape
| Player | Revenue (Latest) | Profitability | Key Differentiator |
| Rentomojo | Rs 266 Cr (FY25) | Profitable — Rs 43 Cr PAT | Largest scale; omni-channel; 71 stores; 23 cities |
| Furlenco | ~Rs 150–180 Cr (est.) | Loss-making (improving) | D2C furniture focus; newer brand; design-led |
| Rentickle | ~Rs 40–60 Cr (est.) | Loss-making | Delhi-NCR centric; smaller footprint |
| Cityfurnish | ~Rs 25–40 Cr (est.) | Loss-making | Online-first; competitive pricing |
| Pepperfry (adjacent) | ~Rs 200 Cr+ (est.) | Near-breakeven | Sales model, not rental; different TAM |
Rentomojo’s closest competitor Furlenco has been loss-making and raised multiple debt rounds to sustain operations. The contrast with Rentomojo’s profitability trajectory is stark — and will be the most compelling slide in the IPO investor presentation.
What the IPO Could Look Like (Estimated)
| Component | Estimate / Status |
| Fresh Issue | Rs 200–400 Cr (estimated — for expansion) |
| Offer for Sale (OFS) | Rs 100–200 Cr (early investor partial exits — Accel, Chiratae) |
| Total IPO Size | Rs 400–600 Cr (est.) |
| Implied Valuation | Rs 2,000–4,000 Cr (7.5–15x FY25 revenue) |
| Exchange | BSE & NSE (targeted) |
| DRHP Filing (expected) | Q3 2026 (Oct–Dec 2026) |
| Listing (expected) | Q4 FY27 (Jan–Mar 2027) |
Note: IPO structure, size, and valuation are StartupFeed.in estimates based on comparable listed companies and publicly available financial data. No DRHP has been filed. All figures will be confirmed only at the time of SEBI filing.
Key Risks Investors Must Track
- Market Size Ceiling: India’s furniture rental TAM is concentrated in 6–8 metro cities. Rentomojo’s expansion to 23 cities is promising but revenue contribution from tier-2 markets is unproven at scale — a critical overhang for institutional valuation.
- No Listed Comparable: There is no publicly traded furniture or appliance rental company in India. Valuations will be benchmarked against consumer subscription businesses (like clean energy or fintech SaaS) — creating pricing uncertainty during IPO roadshows.
- Asset Depreciation Model: Rentomojo’s profitability is partly driven by older, fully-depreciated assets generating ongoing revenue. As the company grows and acquires more assets for new cities, depreciation costs will rise — potentially compressing margins in FY26–FY27.
- Execution Risk in New Cities: 71 stores across 23 cities requires complex logistics, last-mile installation, and maintenance infrastructure. Scaling this model to 50+ cities without deteriorating unit economics is the biggest operational challenge.
- Investor Exit Pressure: With Accel and Chiratae Ventures having invested since ~2016 (9+ years), IPO timing may partly reflect VC exit pressure rather than purely business-led momentum — worth monitoring in the DRHP shareholding disclosures.
What’s Next
The next milestone to watch is the DRHP filing with SEBI — which requires Rentomojo to submit audited FY25 and FY26 financial statements, a complete shareholding pattern, risk factors, and use-of-proceeds breakdown. Given that bankers were appointed in September 2025 and the public conversion is now complete (March 2026), a DRHP filing by Q3 2026 (October–December 2026) is realistic.
Founder Geetansh Bamania has repeatedly cited the company’s “subscription revenue visibility” as its IPO superpower — revenue two years out is largely predictable from existing subscriber cohorts. That predictability, rare in Indian consumer tech, may command a valuation premium over traditional retail or e-commerce businesses.
Our prediction: Rentomojo lists on BSE and NSE by March 2027 at a valuation of Rs 3,000–3,500 Cr (~$360–420 Mn) — pricing at approximately 11–13x FY25 revenue. A successful listing would create a new valuation benchmark for India’s subscription economy and validate the rental-tech business model for the first time in public markets.
