Rentomojo, a Bengaluru-based furniture and appliances rental platform, is set to raise ₹1,256 crore through its initial public offering (IPO) scheduled from September 9 to September 11. The IPO comprises a fresh capital raise of ₹150 crore and an offer for sale (OFS) by existing investors totaling ₹1,106 crore.
The company's early investors, including Accel and Chiratae Ventures, are poised to make significant paper gains of up to 8.6X and almost 5X, respectively, with the IPO price band set at ₹404 per share. Accel could earn up to ₹317 crore, while Chiratae Ventures might realize ₹197 crore from the OFS. Madison India Capital is expected to achieve 7.2X returns, amounting to ₹97 crore.
Rentomojo's founder, Geetansh Bamania, holds a 14.7% stake valued at ₹602 crore at the upper price band. He plans to sell 849,175 shares, representing about a 0.8% stake, potentially earning ₹34 crore. "The business is now in its fourth year of profitability. We don't need to raise large amounts of primary capital," Bamania stated, noting that key shareholders will maintain significant stakes post-IPO.
“The business is now in its fourth year of profitability. We don't need to raise large amounts of primary capital.”
Geetansh Bamania, Founder and Promoter of Rentomojo
In FY26, Rentomojo's net profit surged by nearly 142% to ₹104.3 crore, up from ₹43 crore in FY25, primarily due to a one-time deferred tax credit of ₹36.6 crore. Operating revenue grew by 45.5% to ₹387 crore, driven by new subscriber additions, with total income reaching ₹394 crore.
The IPO marks a significant milestone for Rentomojo, reflecting its robust financial performance and growth trajectory. Investors will be closely watching the company's market debut and subsequent performance.
Background
Rentomojo has been a key player in the furniture and appliances rental market, leveraging the growing trend of rental services in urban areas. Its IPO comes amidst a favorable market environment for tech-driven service companies.
As Rentomojo steps into the public market, stakeholders will be keen to monitor its growth strategy and financial health, especially given its strong profitability and revenue growth in recent years.
