Rentomojo Plans ₹150 Crore IPO to Repay Debt, Fund Leases

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AuthorAarav Shah|Published at:
Rentomojo Plans ₹150 Crore IPO to Repay Debt, Fund Leases
Overview

Rentomojo, a leading online rental platform for furniture and appliances, has filed for an Initial Public Offering (IPO) to raise Rs 150 crore through a fresh issuance of shares. Existing investors, including promoter Geetansh Bamania and venture capital firms, will also offer shares for sale. The company plans to use a significant portion of the proceeds to repay outstanding debt and fund lease rentals for its facilities, aiming to solidify its market leadership with a reported 47% share.

Rentomojo, India's largest online rental and subscription platform for home furniture and appliances, has filed its Draft Red Herring Prospectus (DRHP) with regulators, signaling its intent to launch an Initial Public Offering (IPO). The company aims to raise ₹150 crore through a fresh issuance of equity shares.

Debt Reduction and Operations:
A significant portion of the funds raised will address operational needs. Approximately ₹70 crore is planned for repaying outstanding debt. As of January 31, 2026, the company's consolidated borrowings stood at ₹179.6 crore. An additional ₹42.5 crore is earmarked for lease rentals and licensing fees related to its network of warehouses and experience stores.

Market Position:
The Bengaluru-based company asserts its leadership in the organised home furniture and appliances rental segment. Based on subscription revenue in fiscal 2025, Rentomojo holds an estimated 47% market share, excluding water purifiers. This positions it as a dominant player in the Indian market.

Financial Performance and Listing:
For the six months ended September 30, 2025, revenue from operations reached ₹177 crore, with a restated profit after tax of ₹61.38 crore during the same period. Following approval from the Securities and Exchange Board of India (SEBI), Rentomojo will announce the IPO dates, price band, and other details. The shares are expected to list on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Motilal Oswal Investment Advisors Ltd., Axis Capital Ltd., and IIFL Capital Services Ltd. are serving as the book running lead managers for the issue.

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