Furniture rental platform lines up share sale; early investors to pare stake via OFS
Rentomojo, a leading online rental platform for home furniture and appliances, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on 27 March, seeking to raise funds through an initial public offering (IPO).
The Bengaluru-based company plans to raise Rs 150 crore through a fresh issue of equity shares. In addition, existing investors will offload up to 2.83 crore shares through an offer-for-sale (OFS), partially monetising their holdings.
Investors, including Accel India, Edelweiss Discovery Fund, ValueQuest, Madison India, Chiratae Ventures, and GMO Payment Gateway, along with promoter Geetansh Bamania, will participate as selling shareholders in the OFS.
The company has also kept the option open to raise up to Rs 30 crore in a pre-IPO placement, which will be adjusted against the fresh issue size.
In terms of shareholding, promoters hold a 21.51 per cent stake in the company, while public shareholders account for 73.66 per cent. Employee trusts hold the remaining 4.83 per cent. Among investors, Accel India IV (Mauritius) is the largest public shareholder with a 20.92 per cent stake, followed by Edelweiss Discovery Fund (10.53 per cent), Chiratae Ventures (10.28 per cent), and ValueQuest (8.92 per cent).
Rentomojo operates a direct-to-consumer platform offering rental and subscription-based access to furniture and appliances, catering to urban consumers seeking flexible and asset-light living solutions.
Proceeds from the fresh issue will be partly used to reduce debt, with Rs 70 crore earmarked for repayment of certain borrowings. Of this, Rs 42.5 crore will go towards lease rentals and licence fees for warehouses and experience centres, while the remaining funds will be deployed for general corporate purposes. As of January 2026, the company’s consolidated borrowings stood at Rs 179.5 crore.
The company operates in India’s growing furniture and appliance rental market, which is estimated at around Rs 69,520 crore in 2025 and is projected to expand at a compound annual growth rate of about 11 per cent to reach Rs 1,17,210 crore by 2030.
On the financial front, Rentomojo has reported steady growth. Its profit rose 92.3 per cent to Rs 43.1 crore in FY25 from Rs 22.4 crore a year earlier, while revenue increased 38 per cent to Rs 266 crore from Rs 192.7 crore. For the six months ended September 2025, the company reported a profit of Rs 61.3 crore on revenue of Rs 176.6 crore.
Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services have been appointed as merchant bankers for the issue.
