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Published on
September 22, 2025
5 min read
Rentomojo IPO Preparations Gain Momentum With Strong Profits And Market Share
Bengaluru-based rental furniture startup Rentomojo has begun formal preparations for the Rentomojo IPO, signaling a significant step in India’s evolving rental economy. The company has appointed IIFL and Motilal Oswal as book running lead managers, according to Inc42. This move comes after four consecutive years of profitability and steady revenue growth, placing Rentomojo in a stronger position than many of its peers in the home decor & furniture rental sector.
Financial Growth and IPO Roadmap
Rentomojo’s financials highlight its readiness for a public listing. In FY25, the company achieved a net profit of about ₹40 crore, almost doubling from ₹22.1 crore in FY24. Operating revenue also grew sharply, reaching between ₹260-270 crore compared to ₹193 crore in the previous fiscal year. EBITDA improved to nearly ₹92 crore, up from ₹66 crore the year before.
- FY25 net profit: ~₹40 crore
- FY25 revenue: ₹260–270 crore
- FY25 EBITDA: ~₹92 crore
The company is targeting FY27 for filing its Draft Red Herring Prospectus (DRHP), giving it two years to expand operations, strengthen governance structures, and fine-tune financial efficiency ahead of the Rentomojo IPO.
Market Presence and Operational Scale
With backing from Accel, Chiratae Ventures, and Bain Capital, Rentomojo has raised over ₹400 crore in equity funding. The startup now commands more than 50% of India’s organised furniture and appliances rental market, positioning it as a leader in the furniture and appliance rental startup space. In other news, Indian startup Jar, built around micro-savings in gold, has achieved profitability after significant Jar revenue growth.
Operational Metrics in Focus:
- Over 2.2 lakh active subscribers
- More than 7.5 lakh item units under management
- Utilisation rates above 85%
- Workforce of 2,200+ employees, including retail, warehouse, and customer support staff
Additionally, Rentomojo recently expanded its retail footprint by opening its 65th experience store in Lucknow, covering 22 cities across India. This physical presence complements its digital platform, enhancing customer acquisition in both metropolitan and Tier-2 regions.
CEO Insights and Business Sustainability
Rentomojo’s leadership has emphasised financial discipline as a cornerstone of its growth journey. Geetansh Bamania, CEO of Rentomojo, told ETRetail: “The business is becoming more and more self-sufficient. We are generating enough cash to fund growth, and for additional requirements, we have begun leveraging debt from leading banks and financial institutions.”
This approach underscores a shift toward self-sustainability, reducing dependence on equity funding and ensuring stable capital deployment. For businesses evaluating the rental model, Rentomojo’s example illustrates how asset-heavy operations can achieve consistent profitability through disciplined cost control and utilisation efficiency. Recently, Groww IPO has made history as the first Indian startup to go public after relocating its headquarters from the United States back to India.
Sectoral Significance and Industry Takeaways
The rise of Rentomojo demonstrates the resilience of the growth in rental economy within India. While many startups in the sector have faced challenges in balancing capital expenditures with profitability, Rentomojo’s consistent performance shows that the model can succeed at scale.
Strength in recurring subscription revenues supports predictable cash flow.
A broad geographic footprint allows penetration into multiple customer segments.
Strong unit economics set a benchmark for the broader home decor & furniture rental sector.
As Rentomojo approaches its IPO milestone, its trajectory will serve as a bellwether for other startups considering similar paths.
Road Ahead
The early steps toward the Rentomojo IPO reflect both investor confidence and market maturity in India’s rental economy. For B2B leaders, the company’s expansion, operational discipline, and financial strength underscore the potential of subscription-based models in asset-intensive industries. Rentomojo’s performance may influence future public listings and reshape how businesses evaluate opportunities in the furniture and appliance rental startup ecosystem.
