Rentomojo has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), taking an important step towards becoming a listed company. The furniture and home appliance rental startup had filed its Draft Red Herring Prospectus (DRHP) in March 2026 and is now preparing to enter the stock market after reporting steady growth and improving profits.
The IPO will be a 100% book-built issue. It includes a fresh issue of shares worth ₹150 crore and an Offer for Sale (OFS) of up to 2.84 crore equity shares by existing shareholders. The money raised through the fresh issue will mainly be used to repay part of the company’s loans, pay lease rentals for warehouses and experience stores, and support general business operations.
Several early investors and promoters will sell part of their holdings through the OFS. These include promoter Geetansh Bamania, Chiratae Growth Fund, IDG Ventures, GMO Payment Gateway and Accel India. The company has also said it may raise up to ₹30 crore through a pre-IPO placement before filing its final Red Herring Prospectus. If this happens, the size of the fresh issue will be reduced by the same amount.
Strong Financial Growth and Better Customer Retention Support IPO Plans
Rentomojo has shown strong financial growth over the last few years. Its operating revenue increased from ₹120.1 crore in FY23 to ₹192.7 crore in FY24 and reached ₹265.96 crore in FY25. In the first six months of FY26 alone, the company earned ₹176.61 crore in revenue.
The company’s profits have also grown quickly. Profit after tax increased from ₹4.41 crore in FY23 to ₹22.41 crore in FY24 and then to ₹43.11 crore in FY25. During the first half of FY26, Rentomojo reported a net profit of ₹61.38 crore, showing that its subscription-based business model is becoming more profitable.
Customer loyalty has played a big role in this growth. The average subscription now lasts 18.82 months, while more than 52% of customers place repeat orders. The company has also reduced customer churn by offering loyalty benefits like free product swaps after six months. As a result, customers now stay with the platform for an average of around 28 months.
Rentomojo has also reduced its marketing costs. Around 67% of its website traffic in FY25 came through organic sources such as Google search, brand recognition and customer referrals instead of paid advertisements. The company also worked with marketing agency TripleDart Digital, which helped reduce customer acquisition cost by 62% while increasing overall orders by 15%.
Another reason behind Rentomojo’s success is its efficient use of rental products. Furniture and appliances bought years ago continue to generate revenue. According to the DRHP, products purchased in 2017 were still generating more than 56% active revenue as of September 2025.
To keep these products in good condition, the company has increased spending on refurbishment every year. It spent ₹5.24 crore in FY23, ₹8.57 crore in FY24 and ₹14.89 crore in FY25. During the first half of FY26, it had already spent ₹8.83 crore on repairs and refurbishment. Rentomojo also has more than 1,688 technicians, carpenters and painters who prepare products for the next customer. This helps the company keep a high occupancy rate and improve returns from its assets.
Legal Case and Rising Competition Remain Important Factors
Even though Rentomojo has received SEBI approval, the company is still facing a legal challenge. In March 2026, former co-founder Ajay Nain filed a petition before the National Company Law Tribunal (NCLT) in Bengaluru. He claimed that he was not given complete or accurate information during a share sale in August 2023.
Nain has asked the tribunal to cancel the share sale, restore his earlier shareholding and stop the proposed IPO. While SEBI has approved the IPO despite the case, the legal matter is still pending and may remain an important issue for investors to watch.
Rentomojo is currently one of the biggest players in India’s organised furniture and appliance rental market, with an estimated market share of 42% to 47%. It also has more than half of the active subscribers in the organised rental segment. However, competition is growing.
Its biggest rival, Furlenco, became financially stronger after being acquired by Sheela Foam in 2023. Other companies like Cityfurnish and Rentickle are also expanding. At the same time, IKEA has started testing furniture rental services in major Indian cities. Easy EMI and Buy Now Pay Later options offered by online shopping platforms are also giving customers another way to buy products instead of renting them.
To stay ahead of the competition, Rentomojo has started selling private-label appliances made through its partnership with Dixon Technologies. The company has also launched a private-label water purifier starting at ₹391 per month, hoping to attract more first-time customers.
With strong revenue growth, rising profits, better customer retention and efficient management of its rental products, Rentomojo is entering the stock market in a much stronger position than many startups. However, investors will continue to watch how the legal case and increasing competition affect the company’s future growth.