Rentomojo opens ₹1,256 crore IPO to fund debt reduction and network leases
Bengaluru-based furniture and appliance rental platform’s IPO includes a ₹150 crore fresh issue and ₹1,106 crore OFS. Fresh proceeds are earmarked for debt repayment and warehouse and experience-store leases. Rentomojo reported FY26 revenue of ₹386.99 crore and net income of ₹67.66 crore.
What happened
Bengaluru-based furniture and appliance rental platform Rentomojo opened its Rs 1,256 crore IPO. Fresh proceeds will fund debt reduction and warehouse and
Key facts
- Rs 1,256 crore total IPO size
- Rs 150 crore fresh issue
- Rs 1,106 crore OFS
- 2.84 crore shares in OFS
- Rs 376.07 crore raised from anchor investors
- Rs 404 anchor allotment price per share
- Over 2.5 lakh live subscribers
- 29 cities
- Rs 70 crore for debt repayment/prepayment
- Rs 42.5 crore for warehouse and experience-store leases
- FY26 revenue: Rs 386.99 crore
- FY26 net income: Rs 67.66 crore
- FY25 revenue: Rs 265.96 crore
- FY25 net income: Rs 43.11 crore
- Rs 4,006 crore implied market capitalisation
- 38-40x FY26 earnings
- Rs 115 grey-market premium
- Nearly 28% GMP over upper price band
Why this matters
Rentomojo’s planned deleveraging and network build-out could make it a better-capitalized competitor or a more attractive partnership target in India’s furniture and appliance rental market.
What to watch
- Subscription mix across QIB, HNI and retail investors, plus grey-market premium and final issue pricing.
- Post-IPO debt-to-equity, interest expense trend and lease-liability disclosures.
- Revenue growth relative to FY26 profitability, especially whether net income remains positive after network expansion.
- Warehouse/store rollout pace, occupancy or utilization metrics, delivery lead times and reverse-logistics costs.
- Average rental tenure, churn, customer acquisition cost, repeat-rental rates and refurbishment/write-off levels.
- Competitive pricing moves by rental, marketplace, co-living and consumer-finance platforms.
- Performance after the planned September 17 listing, particularly whether institutional investors support the stock beyond initial trading.
- Accelerate debt repayment after allotment and disclose the resulting interest-cost and leverage reduction.
- Expand warehouses and experience stores selectively in high-density metro catchments where reverse-logistics costs are lowest.
- Use the public listing to strengthen partnerships with housing platforms, employers, co-living operators and appliance suppliers.
- Increase focus on inventory utilization, refurbishment recovery, customer retention and contribution margin disclosures to reassure investors about asset-heavy economics.
- Competitors in furniture rental and used-furniture commerce may respond with promotional pricing, bundled appliance plans or faster-delivery promises in major cities.