Rentomojo’s ₹1,256-crore IPO will open for subscription on September 9, 2026. Early backer Nitish Mittersain, founder of Nazara Technologies, is set for a massive 152x return on the shares he is selling. The company reported a net profit of ₹104.30 crore in FY26, but investors should consider risks like its heavy reliance on furniture and appliance rentals.
The Rentomojo initial public offering (IPO) is set to hit the market on September 9, 2026, offering investors a chance to participate in the furniture and appliance rental platform’s growth. The company aims to raise a total of approximately ₹1,256 crore, which includes a fresh issue of shares worth ₹150 crore and an offer for sale of up to 2.74 crore shares by existing stakeholders. The subscription window will remain open until September 11, with the price band for the issue set between ₹384 and ₹404 per share.
A key highlight of this IPO is the significant exit for early-stage investor Nitish Mittersain, the founder of Nazara Technologies. Regulatory filings show that Mittersain is offloading 148,460 shares as part of the offer for sale. Based on the upper price band of ₹404 per share, this exit represents a return of approximately 152 times his initial investment. Despite this partial exit, Mittersain is expected to retain a portion of his stake in the company post-listing.
Financial Performance and Business Model
The company enters the public market with a profitable track record. In the 2026 financial year, Rentomojo reported a total revenue of ₹394.09 crore and a net profit of ₹104.30 crore. This performance suggests the company has managed to scale its operations while keeping costs under control, a critical factor for any subscription-based business.
Rentomojo operates on an asset-heavy model, meaning it owns a large inventory of furniture and appliances that it rents out to customers. While this model allows for recurring revenue, it also requires constant investment to maintain, refurbish, and replace these physical assets. Investors should note that the company relies heavily on these specific rental categories, with approximately 98% of its revenue derived from furniture and appliance rentals. This high concentration makes the business sensitive to shifts in consumer demand and potential changes in how people prefer to acquire household goods.
Operational Risks and Market Focus
Beyond market demand, the company’s performance is tied to effective supply chain management. Rentomojo depends on third-party manufacturers and vendors to procure its inventory. Any disruption in this supply chain or issues with product quality could directly affect the company’s ability to serve customers and impact its profit margins. Furthermore, because the business involves managing a massive volume of physical goods, the efficiency of its asset lifecycle management—how well it tracks, cleans, and re-rents items—will be a major factor in maintaining its financial health.
The public debut on the BSE and NSE is tentatively scheduled for September 17, 2026. Following the listing, the primary monitorables for investors will be the company’s ability to sustain its profit margins as it scales, its success in managing its large inventory of physical assets, and whether it can successfully diversify its revenue streams beyond its core rental categories.