Rentomojo Files IPO Papers With Sebi; Accel, Chiratae Among Selling Shareholders

Rentomojo IPO: Furniture and appliances rental platform, Rentomojo, has filed its draft red herring prospectus (DRHP) with capital markets regulator, the Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).

The proposed IPO comprises a fresh issue of equity shares worth Rs 150 crore and an offer-for-sale (OFS) of up to 28.30 million equity shares by existing shareholders.

Investors, such as Accel India, Edelweiss Discovery Fund, ValueQuest, Chiratae Ventures, Madison India Opportunities, GMO Payment Gateway, along with founder Geetansh Bamania, will participate in the OFS. Accel India is expected to offload the largest chunk of shares, followed by Chiratae Ventures, Edelweiss Discovery Fund and ValueQuest.

The company may also consider a pre-IPO placement of up to Rs 30 crore, which will be part of the fresh issue component.

Rentomojo Shareholding Pattern and Bankers

According to the DRHP, promoters hold a 21.51 per cent stake in the company, while public shareholders own 73.66 per cent and employee trusts hold the remaining 4.83 per cent. Accel India is the largest shareholder with a 20.92 per cent stake.

Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services have been appointed as the book-running lead managers (BRLMs) to the issue, while KFin Technologies is the registrar.

Rentomojo IPO Objectives

Rentomojo plans to use around Rs 70 crore from the net fresh issue proceeds towards repayment of certain borrowings. This includes Rs 42.5 crore for lease rentals or licence fees for warehouses and experience stores, with the remaining funds earmarked for general corporate purposes.

As of January 2026, the company had total outstanding borrowings of Rs 179.50 crore on a consolidated basis.

What Rentomojo Does

Founded in 2014, Rentomojo operates a direct-to-consumer, technology-driven platform offering rental and subscription services for furniture, appliances and other categories, such as water purifiers. The company serves over 220,000 subscribers and operates across more than 20 cities with a network of warehouses and experience stores.

The company is the largest player in the organised online rental segment for furniture and appliances, with an estimated market share of 42-47 per cent based on subscription revenue in FY 2025, according to a Redseer report cited in the draft papers.

Industry Outlook

The home furniture and appliances rental market in India, estimated at Rs 69,520 crore in calendar year 2025, is projected to grow at a compounded annualised growth rate (CAGR) of around 11 per cent to reach Rs 1,17,210 crore by 2030, according to the company’s DRHP.

Rentomojo Financials

The company’s profit after tax (PAT) rose 92.3 per cent to Rs 43.10 crore in FY25 from Rs 22.40 crore in the previous year, while revenue from operations increased 38 per cent to Rs 266 crore from Rs 192.70 crore.

For the six months ended September 2025, Rentomojo reported a profit of Rs 61.30 crore on revenue of Rs 176.60 crore.