Rentomojo targets expansion with ₹1,256 crore IPO as rental assets drive repeat revenue
Furniture and appliance rental platform Rentomojo plans to use fresh IPO proceeds for debt reduction and warehouse and experience-store leases. FY26 operating revenue rose 45.5% to ₹387 crore, while profit more than doubled to ₹104.3 crore.
What happened
Rentomojo plans a ₹1,256-crore IPO while expanding furniture and appliance rentals beyond core cities. It will use fresh capital for debt reduction and
Key facts
- ₹1,256 crore IPO
- ₹150 crore fresh issue
- ₹1,106 crore offer for sale
- ₹4,246 crore valuation at upper price band
- FY2017 asset cohort generated 5.12x original asset cost in revenue
- 83-84% asset occupancy in FY26
- FY26 operating revenue ₹387 crore, up 45.5%
- FY26 PAT ₹104.3 crore versus ₹43.1 crore a year earlier
- 2.54 lakh live subscribers across 29 cities as of March 2026
- 98.19% of FY26 operating revenue from furniture and appliance rentals
- Top 10 cities contributed 89.51% of FY26 revenue
- ₹70 crore for debt repayment or prepayment
- ₹42.5 crore for warehouse and experience-store leases
Why this matters
Rentomojo’s accelerating profitability and planned physical-network buildout make it a notable rental-commerce platform for partnerships or acquisitions spanning furniture, appliances, logistics and circular retail.
What to watch
- Final IPO structure, fresh-issue versus offer-for-sale mix, valuation range, and stated debt-repayment allocation.
- Revenue growth and EBITDA/PAT margins after warehouse and experience-store rollout begins.
- Operating cash flow relative to reported profit, along with rental-asset capex and depreciation trends.
- Rental asset utilization, average order value, subscription renewal rates, churn, and average customer tenure.
- Interest-cost reduction and net-debt trajectory following the IPO.
- Same-city delivery, collection, refurbishment, and reverse-logistics costs as the footprint widens.
- Competitive pricing actions from furniture rental, quick-commerce, marketplace, and organized furniture retail rivals.
- Consumer discretionary demand in major Indian metros and the pace of household formation among renters and young professionals.
- Prioritize debt repayment to lower interest expense and improve post-IPO earnings quality.
- Expand warehouse capacity in high-density metro clusters where reverse-logistics costs can be contained.
- Use experience stores to reduce customer hesitation around furniture quality, condition, and rental terms.
- Increase cross-selling between furniture and appliances to raise revenue per household and reduce acquisition payback periods.
- Strengthen refurbishment, resale, and asset-redeployment systems to improve residual-value recovery and lower replacement capex.
- Disclose asset utilization, average rental tenure, renewal rates, customer acquisition cost, credit losses, and operating cash flow to support valuation confidence.