RentoMojo sets ₹384–₹404 IPO band for ₹1,256 crore issue
Furniture and appliance rental platform RentoMojo plans to use fresh IPO proceeds for debt reduction and offline network costs, including store and warehouse rentals. The company operates 82 stores and 20 warehouses across 29 cities.
What happened
Rentomojo · Indian furniture and appliance rental platform RentoMojo set a ₹384-₹404 IPO price band for a ₹1,255.6 crore issue. Fresh proceeds will fund debt
Key facts
- ₹384-₹404 per share price band
- ₹1,255.6 crore IPO at upper price band
- ₹150 crore fresh issue
- ₹1,105.6 crore OFS of up to 2.7 crore shares
- ₹4,206.3 crore post-offer market capitalisation
- ₹70 crore for debt repayment/prepayment
- ₹42.5 crore for offline-store and warehouse rentals/licences
- 20 warehouses and 82 offline stores across 29 cities
- 8.5 lakh live items and 2.5 lakh live subscribers as of March 2026
- FY26 revenue ₹387 crore, up 45.5%
- FY26 PAT ₹104.3 crore, up nearly 142%
- FY26 EBITDA ₹163.5 crore; margin 41.5%
Why this matters
RentoMojo’s 82-store, 20-warehouse footprint across 29 cities raises the strategic value of partnerships or acquisitions that add local fulfillment, retail locations, or complementary rental categories.
What to watch
- IPO subscription, listing performance and the final split between offer-for-sale proceeds, fresh capital and debt repayment.
- Post-listing disclosures on new store and warehouse openings, lease liabilities, same-store productivity and city-level expansion pace.
- Changes in EBITDA margin, finance cost, operating cash flow and working-capital intensity after debt reduction.
- Rental renewal rates, average order value, asset utilization, refurbishment cycles and inventory write-offs.
- Whether offline locations generate incremental online orders or merely shift existing digital demand into higher-cost channels.
- Competitive launches from furniture retailers, appliance brands, managed-rental platforms and quick-commerce/logistics players in major metros.
- Prioritize stores in micro-markets with existing online demand, high repeat order rates and efficient warehouse reach rather than pursuing broad city-count expansion.
- Use stores as service hubs for consultations, refurbishing intake, swap/upgrade requests and last-mile returns to raise asset utilization beyond walk-in sales.
- Negotiate variable or revenue-linked lease structures where possible to limit fixed-cost exposure during new-market ramp-up.
- Direct debt-reduction proceeds toward lowering interest burden, preserving cash for inventory refreshes and selective warehouse automation.
- Track cohort-level profitability by city, including delivery cost, damage/repair expense, rental tenure, renewal rate and inventory idle days.
- Build partnerships with developers, co-living operators, employers and relocation firms to seed predictable demand around each offline node.