Rentomojo raises Rs 1,256 crore in September IPO despite market selloff
Rentomojo raised Rs 1,256 crore in September’s IPO market, where 34 companies raised nearly Rs 39,380 crore. SS Retail and Deepa Jewellers also featured, while Jio Platforms’ proposed share sale of around Rs 40,000 crore remains in the pipeline.
Read the source at Business Today · LatestThe numbers
| SS Retail IPO proceeds: | over Rs 500 crore |
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Why it matters to operators and investors
Rentomojo’s successful raise despite a market selloff signals investor appetite, but valuation, profitability and cash generation remain the critical investment tests.
What to watch next
- Disclosed split between fresh issuance and shareholder sales
- Rentomojo's share-price performance relative to its issue price
- Reported rental utilisation and operating cash flow
- Announced inventory purchases or geographic expansion
The counter-case
Raising Rs 1,256 crore during a selloff would demonstrate financing access, not necessarily business strength or an attractive valuation. Furniture rental requires upfront asset purchases and ongoing delivery, refurbishment and recovery costs; recurring revenue can mask weak cash generation if utilization falls or customer churn rises. Any offer-for-sale component would fund selling shareholders rather than Rentomojo’s expansion.