Rentomojo has fixed its IPO price band between ₹384 and ₹404 per share, seeking to raise approximately ₹1,255 crore. The subscription window for the furniture and appliance rental platform opens on September 9 and closes on September 11, 2026. The funds will primarily support debt reduction and business expansion.
Rentomojo has announced the details for its upcoming initial public offering, setting a price band of ₹384 to ₹404 per share. The company aims to raise a total of ₹1,255.57 crore through this public issue. The subscription window for potential investors is scheduled to open on September 9, 2026, and will remain open until September 11, 2026. Investors looking to participate must bid for a minimum of 37 shares, which represents one lot.
Financial Performance and Use of Funds
The public issue comprises a fresh issuance of equity shares worth up to ₹150 crore alongside an Offer for Sale of up to 2.74 crore shares by existing shareholders, including the venture capital firm Accel. The company plans to use the proceeds from the fresh issue to pay down existing debt obligations and fund operational expansion. This IPO arrives following a period of financial growth for the Bengaluru-based firm. For the financial year ended March 31, 2026, Rentomojo reported a net profit of ₹104 crore, with total revenue reaching ₹387 crore.
Business Model and Growth Strategy
Rentomojo operates in the subscription-based furniture and appliance rental sector, a niche that has historically lacked direct listed peers in the Indian market. The company currently serves over 250,000 active subscribers across 29 cities. Its business model relies on maintaining a network of warehouses and physical experience stores to facilitate its rental services. As the company transitions to the public markets, it intends to leverage its existing infrastructure to deepen its market penetration.
Investor Risks and Considerations
Investors considering this IPO should note the specific business risks associated with the asset-heavy nature of the rental industry. Rentomojo requires consistent capital to procure and maintain its inventory of furniture and appliances. The company’s financial success is closely linked to its ability to manage high asset utilization rates and efficient logistics, including reverse logistics for returned goods. Additionally, since the company offers non-essential consumer goods, its demand could face volatility if consumer discretionary spending slows down. Because there are no direct listed competitors, evaluating the company's valuation involves comparing it against broader consumer retail and fintech-adjacent sectors.
The anchor investor portion of the offering is scheduled to open on September 8, 2026, one day before the public subscription window. Following the closure of the issue, the company is expected to finalize the allotment and proceed toward its stock exchange listing, which is tentatively scheduled for September 17, 2026.