Furniture and appliance rental startup Rentomojo has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signalling plans for an initial public offering that includes a fresh equity raise of ₹150 crore as part of a larger deal worth roughly ₹1,100–1,200 crore.
Offer structure and allocation
Alongside the fresh issue, the IPO will include an offer-for-sale (OFS) component enabling existing investors to sell part of their holdings. This combined structure is commonly used by growth-stage startups to raise fresh capital while providing partial exits for early backers and venture investors.
Planned use of proceeds and expansion strategy
Rentomojo intends to deploy the fresh capital to shore up its balance sheet and finance expansion. Management has indicated that proceeds will likely support entry into new cities, expansion of supply-chain and logistics capabilities, and upgrades to its technology platform to improve customer experience and operational efficiency.
The company operates a subscription-based model offering furniture, appliances and consumer electronics on rent, primarily to urban consumers. Rising workforce mobility, shorter housing tenures and changing lifestyle preferences have driven demand for flexible ownership alternatives, creating a larger addressable market for rental and subscription businesses.
Financial trajectory ahead of listing
The IPO announcement follows a period of improving financial performance for Rentomojo. The company has reported consistent revenue growth and a notable improvement in profitability in the most recent financial year, reflecting better unit economics and tighter cost controls that have historically challenged the rental sector.
These efficiency gains—through optimised logistics, asset utilisation and technology-led customer acquisition—have strengthened Rentomojo’s positioning as it prepares to access public markets.
Implications for the rental economy
A successful listing would represent a significant milestone for India’s nascent rental economy, potentially validating the IPO route for other subscription-led consumer startups. Rentomojo’s footprint across major cities and its growing customer base position it to capitalise on shifting consumer behaviour while attracting investor interest in India’s expanding digital and consumer-driven market.
