Rentomojo
- Rentomojo is coming out with a 100% book building; initial public offering (IPO) of 3,12,74,640 shares of face value Rs 1 each in a price band Rs 384-404 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on September 09, 2026 and will close on September 11, 2026.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 1 and is priced 384 times of its face value on the lower side and 404 times on the higher side.
- Book running lead managers to the issue are Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services.
- Compliance officer for the issue is Deepika N Bhandiwad.
Profile of the company
Rentomojo operates a technology-driven, full-stack direct-to-consumer (D2C) online rental and subscription platform for furniture and appliances in India. It is the largest online rental and subscription platform for home furniture and appliances based on live subscribers as of March 31, 2025 and as of September 30, 2025, and subscription revenue during Fiscal 2025, amongst leading home furniture and appliance rental platforms in India. As of March 31, 2026, it had 253,825 live subscribers spread across 29 cities in India, enabling subscribers to access home essentials through affordable, long-term and flexible subscription plans backed by a reliable and a full-stack asset-lifecycle model. Its integrated asset lifecycle model, spanning across category management, designing, procurement, refurbishment, servicing, reverse logistics and multi-cycle redeployment, helps it deliver a flexible living experience to modern age consumers of India. In addition, it focuses on offering quality service, to drive subscriber satisfaction and retention.
Its platform, operating through an omni-channel mechanism, combining online ordering platform and experience stores, enables consumers to access furniture and appliances on a flexible subscription plan, thus eliminating the need for large upfront purchases, repair and maintenance hassles, relocation concerns, limitations on upgrading products and long-term ownership commitments. Consumers rely on its brand to subscribe to essential home-building blocks such as beds, mattresses, washing machines, refrigerators, wardrobes, sofas, televisions, and water purifiers. It has a comprehensive portfolio of 851,184 live items (Products) across furniture and appliances.
To deliver a quality-driven, standardized, and reliable service experience, it operates through a combination of tie ups with logistics partners, who are groomed and trained over several years to ensure timely and efficient deliveries, as well as a trained network of service professionals. These professionals are supported through comprehensive in-house training, defined processes, technology tools and timely supply of consumables, in addition to clear service-based incentives. This approach aims to drive consistent service quality, enhances operational reliability and earning potential of its service professionals, and ultimately ensures a hassle-free experience for its consumers.
Proceed is being used for:
- Repayment/ prepayment, in full or in part, of certain outstanding borrowings and accrued interest thereon availed by the company.
- Payment of lease rental/ license fee for its warehouses and experience stores (Premises).
- General corporate purposes.
Industry overview
India’s home furniture and appliances (furniture includes bed, mattress, sofa, wardrobe, dining set, study table and chair, and appliances include washing machine, refrigerator, water purifier, microwave, air conditioner (AC), water heaters, vacuum cleaner, air purifier, dishwasher, food preparation appliances, heating appliances, irons, and small domestic appliances such as air fryers, mixer grinders, gas stoves, induction cooktops, other small kitchen appliances) is a large market at a value of around Rs 4,270 billion (around $50 billion) in CY2025 growing at around 10% CAGR from CY2021 to CY2025 on the back of growing middle class, rising urbanization, and improved infrastructure in Tier 2+ cities. Moreover, as the number of nuclear households are expected to grow by around 50 million from around 220 million in 2025 to around 270 million in 2030P, demand for furniture and appliances would proportionately increase.
India’s urban expansion has transformed the country’s economic and social landscape. Between CY2000 and CY2025, the urban population has nearly doubled from around 292 million to over 522 million as the urbanization rate climbed from around 28% to around 36% of total population. This migration toward cities is driven by emerging job opportunities in global capability centres (GCC), growth of manufacturing and industrial clusters, and development of technology and startup ecosystems among other drivers. This structural tailwind of the past two decades has further driven the demand for housing (incl. furniture, and appliances, among others), infrastructure, and services. By CY2050P, India’s urbanization is projected to reach around 43% adding another around 200 million to the urban population. On the other hand, China has around 65% urbanization rate in CY2025, underscoring significant headroom for growth in India.
The home furniture and appliances market comprises of three models of access: i) original equipment manufacturer (OEM) led purchase of new products, where consumers buy furniture and appliances outright from branded manufacturers or retailers, and ii) second-hand purchase, facilitated through online marketplaces or local unorganized sellers and iii) rental model where consumers buy a subscription via organized players to rent furniture or appliance products. While both ownership models benefit from lower operational complexity and limited post-sale involvement, they offer little flexibility to consumers and do not participate in the asset lifecycle beyond the point of sale. Organised rental differs structurally from purchase-led models across multiple points in the value chain. While rental is inherently more capital intensive and operationally complex, it enables deeper participation in the asset lifecycle and stronger repeat engagement with customers. In contrast, OEM purchase models optimize for brand-led demand and low balance-sheet risk, while second-hand purchase platforms remain price-driven with fragmented supply and limited system level efficiencies. These structural differences shape not only the economics of each model, but also their ability to serve increasingly mobile urban consumers with evolving housing needs.
Pros and strengths
Consistently profitable D2C player since Fiscal 2023: It is one of the few Indian D2C product commerce brands and platforms to have demonstrated consistent profitability, over the last three Fiscals, supported by efficient unit economics, high asset utilization, efficient capital allocation and a multi-cycle asset-lifecycle model that extends product life and enhances margins. Its business model is anchored in its subscription agreements, which renew monthly with auto-renewal provisions embedded in the contract structure, and many of which have long tenures that generate predictable and recurring revenue streams. Its average subscription period is 18.04, 18.82 and 18.41 months in Fiscals 2026, 2025 and 2024, respectively. Its rental revenue is recognized over a period of time in accordance with the terms of the respective subscription agreements with subscribers, creating sustained visibility into future inflows and creating a predictable revenue stream. This recurring revenue structure is reinforced by a large and growing base of live subscribers who subscribe to furniture, appliance and water-purifier plans under monthly billing cycles.
Leading furniture and appliance rental platform: It is a market leader in the organised home furniture and appliances rental market (excluding water purifiers), commanding approximately 42% - 47% share in terms of subscription revenue in Fiscal 2025 and accounting for more than half (50% - 55%) of the live subscribers in the overall home furniture and appliances rental market (excluding water purifiers) as of March 31, 2025 and as of September 30, 2025. Its scale advantage creates strong compounding network effects driven by word-of-mouth and repeat engagement. With the largest live subscriber base of 227,511 as of September 30, 2025, amongst leading home furniture and appliance rental platforms in India, it interacts with subscribers across 11 touchpoints throughout their subscription lifecycle, ranging from orders, risk assessment, delivery, installation, monthly collections, relocation, repairs, upgrades, subscription contract transfers, reverse logistics, and refunds. Frequent subscriber engagements are expected to support strong brand recognition and trust, which then contributes to organic recall, repeat orders and sustained advocacy across the consumer base. As a result, a meaningful portion of traffic and demand is anticipated to originate organically, targeting reinforcing its market leadership while helping to optimise subscriber acquisition costs and supporting sustained subscriber retention.
Integrated multi-stack business model: Its business model is uniquely positioned at the intersection of e-commerce, subscription, and re-commerce, creating a self-reinforcing flywheel that simultaneously enhances consumer value and drives structural efficiency and capital productivity for its platform. It operates an execution-driven and high-engagement business model, comprising 11 distinct consumer touchpoints across the subscription lifecycle - far higher than the 3 to 5 touchpoints typical of most D2C product commerce brands and platforms, highlighting the operational depth, service intensity, and full-stack execution capabilities inherent in its business model, which make it difficult to replicate. Its three stacks reinforce one another in a continuous flywheel. The subscription stack aims to generate long tenures, high long term subscriber value (LTSV), and predictable returns; high LTSV enhances the re-commerce stack, which extends asset life and maintains strong occupancy; asset life elongation and high occupancy reduce capex requirements, improving margins; these efficiencies enhance the e-commerce stack, which further reduces unit costs; and lower unit costs strengthen the affordability, flexibility, and value proposition of the subscription offering - thereby increasing LTSV once again.
Proven track record of extended reuse during asset life cycle and consistent cohort returns: Its full-stack model operates as a self-reinforcing flywheel across subscription, re-commerce, and e-commerce stacks. It has already demonstrated the operation of this flywheel in practice through sustained redeployment, increasing revenue per cohort and ongoing utilisation of older assets over multiple cycles. As a result of its refurbishment capabilities and end-to-end ownership of the asset lifecycle, it is at a stage where it is positioned to deliver structurally attractive economics over time, with older asset cohorts able to generate higher cumulative returns as they progress through multiple cycles of redeployment - an advantage that is uniquely enabled by its end-to-end ownership of the asset lifecycle and one that it has already realised across multiple asset vintages.
Risks and concerns
Significant revenue derives from renting furniture and appliances: It derives most of its revenues by renting furniture and appliances (along with other recurring subscription revenue) (97.90%, 98.20% and 98.19% of its revenue from operations for Fiscals 2026, 2025 and 2024, respectively). Consequently, the success of its business is dependent on factors impacting consumer spending such as general economic conditions in the markets where it operates, levels of employment, disposable consumer income, inflationary trends, government policies and consumer confidence in general, all of which are beyond its control. Unfavourable general economic conditions, due to any one or more of these or other factors, could cause its existing subscribers and potential subscribers to forgo renting products from it, especially with respect to those products considered to be discretionary items.
Dependence on vendors for product quality, supply: It depends on its vendors to offer high-quality products for rental to its subscribers, and it procures such products through a combination of purchase orders and long-term agreements. While it has a large network of vendors, it may purchase certain types of products from a limited number of vendors, which could create vulnerabilities if disruptions in supply or quality issues exist. Additionally, there may be a concentration risk for certain products where a small number of vendors account for a significant portion of its purchases, increasing its exposure should any of these vendors experience operational, financial, or supply-chain challenges. The discontinuation in the supply of products or a failure on the part of its vendors to adhere to agreed delivery schedules as well as the required quality and number of products, could affect its ability to rent products to subscribers. If it was to experience a significant or prolonged shortage of products from any of its material vendors and if it is unable to find alternate sources of such products in a timely manner and at an acceptable cost, it may not be able to rent products to subscribers and its business and results of operations may be adversely affected.
Revenue reliance on subscriber acquisition and engagement: The growth of its business and revenues is dependent on its ability to continue to grow the number of subscribers that utilize its rental platform, rental services and rental products, and providing high levels of customer experience. An increase in the number of its subscribers helps in growing the number of orders placed on its platform and consequently its revenues. Its ability to attract and retain subscribers depends on a number of factors including the range of products that are offered on its platform, the speed with which it can fulfil orders placed on its platform, the service levels its personnel provide while delivering and installing products, its ability to replace or repair faulty products in a timely manner, its ability to raise debt to purchase assets, and the ease with which subscribers can place orders and service requests with it. If it is unable to retain its existing subscribers and attract new subscribers, its business, results of operations, financial condition and cash flows may be adversely affected.
Exposure to payment defaults and premature cancellations: It receives rental payments from its subscribers on a monthly basis and the success of its business depends on its ability to successfully obtain payments due from such subscribers. Its rental agreements and subscription contracts may be subject to premature cancellations by subscribers for various reasons, including relocation, dissatisfaction with products, changes in financial circumstances or availability of competitive alternatives. Premature cancellations may result in loss of expected rental income and increased costs associated with reverse logistics and refurbishment. In addition, it receives rental payments from its subscribers on a monthly basis and its business depends on its ability to collect such payments in a timely manner. However, it may experience delays or defaults in payments due to financial difficulties of subscribers, adverse macroeconomic conditions or other factors, which may increase its receivables and impact its cash flows.
Outlook
Rentomojo operates a technology-driven, full-stack direct-to-consumer (D2C) online rental and subscription platform for furniture and appliances in India. Its proprietary ticketing technology within its subscription stack is purpose-built to enable and integrate a business model that is unique and first-of-its-kind among leading home furniture and appliance rental platforms in India. Unlike conventional e-commerce or single-stack subscription platforms, it operates a multi-stack, high-touchpoint flywheel across subscription, re-commerce, and e-commerce, requiring deep orchestration of assets, logistics, service workflows, refurbishment cycles, and consumer touchpoints. On the concern side, its operations involve the storage, refurbishment, and movement of assets through and within the warehouses. It has experienced a fire at one of its warehouses in June 2026, and any incident such as fire, natural calamity or operational disruption at these locations could result in asset damage, temporary suspension of operations, increased costs, or delays in service delivery, which may adversely affect its business, results of operations, financial condition and cash flows.
The issue has been offering 3,12,74,640 shares in a price band of Rs 384 - 404 per equity share. The aggregate size of the offer is around Rs 1200.95 crore to Rs 1263.50 crore based on lower and upper price band respectively. Minimum application is to be made for 37 shares and in multiples thereof thereafter. On performance front, its revenue from operations increased by 45.51% to Rs 3,869.88 million in Fiscal 2026 from Rs 2,659.59 million in Fiscal 2025. Its profit for the year increased by 141.96% to Rs 1,042.99 million in Fiscal 2026 from Rs 431.06 million in Fiscal 2025.
Meanwhile, its omni-channel expansion strategy is anchored in a micro-market-first approach, enabled by the granular consumer and operational data captured across its platform. With a presence in 29 cities in India, it operates not merely at a city level but at a micro-market level, tracking demand patterns, category adoption, product preferences and credit behaviour across neighbourhood clusters. Its micro-market approach informs how it prioritises channels, assortments, and credit models across its omni-channel footprint. For instance, at a pincode level, it identifies which product categories, formats, and price tiers are most likely to succeed, enabling sharper assortment planning across digital and physical touchpoints. Going forward, it plans to continue investing in its proprietary technology stack to further enhance customer experience and its operational efficiencies across logistics and service workflows, and drive structural cost savings across the asset lifecycle. During Fiscals 2026, 2025 and 2024, its information technology expenses were Rs 113.45 million, Rs 83.52 million and Rs 59.23 million, respectively. It intends to leverage artificial intelligence and ML tools to improve its refurbishment infrastructure by enhancing diagnostic accuracy, further refine the forecasting of spare-part requirements, reduce refurbishment turnaround times, and optimize technician workflows.
