Rentomojo’s four-year profit run boosts confidence ahead of ₹1,255.57 crore IPO
Furniture-rental platform Rentomojo reported FY26 revenue of ₹386.99 crore, up 45.5%, and PAT of ₹104.3 crore, versus ₹43.1 crore a year earlier. Operating cash flow of ₹172.9 crore is supporting inventory expansion and deeper city penetration as it heads to market with a ₹1,255.57 crore IPO.
What happened
Rentomojo says four years of profitability and FY26 operating cash flow now fund inventory expansion, improving lender confidence ahead of its ₹1,255.57 crore
Key facts
- ₹1,255.57 crore IPO
- IPO opens 9 September and closes 11 September
- ₹384-404 per share price band
- ₹150 crore fresh issue
- ₹1,105.57 crore offer for sale
- ₹172.9 crore FY26 operating cash flow
- ₹175.8 crore FY26 capital expenditure
- ₹386.99 crore FY26 revenue, up 45.5%
- ₹104.3 crore FY26 profit after tax versus ₹43.1 crore a year earlier
- 851,184 live items at FY26-end
- 83.34% occupancy rate
- ₹1,550 crore 2025 furniture and appliance rental market
- ₹6,030 crore projected 2030 market
Why this matters
Rentomojo’s profitable growth and cash-backed inventory expansion make it a credible strategic partner or competitor in India’s circular furniture, subscription and urban-living ecosystem.
What to watch
- IPO subscription levels, anchor-investor participation, pricing relative to listed consumer-internet and rental peers, and post-listing performance.
- Use-of-proceeds allocation between fresh inventory, debt reduction, technology and marketing.
- Quarterly revenue growth, PAT margin, operating cash flow conversion and free-cash-flow movement after inventory capex.
- Inventory utilization, average rental duration, renewal rates, customer churn and contribution margin by city.
- Depreciation, refurbishment, warehousing, delivery and reverse-logistics costs as a share of revenue.
- Competitive pricing actions from furniture retailers, rental platforms, co-living providers and quick-commerce-adjacent home-service players.
- Demand conditions in urban migration, white-collar hiring, housing formation and discretionary spending.
- Prioritize IPO proceeds toward high-utilization furniture categories and cities with proven repeat-rental demand rather than broad, low-density expansion.
- Use operating cash flow to improve inventory refurbishment, reverse logistics and asset tracking, protecting contribution margins as the fleet grows.
- Demonstrate cohort retention, rental renewal rates, inventory utilization and customer-acquisition payback in IPO disclosures and quarterly reporting.
- Expand partnerships with employers, co-living operators, developers and relocation providers to lower acquisition costs and increase predictable demand.
- Maintain disciplined pricing and underwriting for deposits, subscriptions and damage recovery to prevent growth in receivables or asset-loss costs.