Rentomojo, a pioneering furnishing rental brand offering furniture, appliances, and fitness equipment on a monthly rental basis, has recently closed a significant investment round of Rs 210 crore (approximately $25 million) as part of its ongoing Series D and D1 funding. The financing was spearheaded by Edelweiss Discovery Fund Series – I, with strong support from existing investor Chiratae Growth Fund, and Magnetic, founded by Rajeev Chitrabhanu.
This infusion of capital marks a substantial milestone for Rentomojo, following its previous funding of Rs 145 crore during the Series C round in November 2021. Founder and CEO Geetansh Bamania expressed his enthusiasm, noting that this investment will serve as a strategic launchpad for the company’s continued dominance in the furniture and appliances rental category within India.
A Leader in the Rental Market
Headquartered in Bengaluru, Rentomojo has established a strong presence in 16 cities, catering to the needs of nearly 450,000 customers since its inception. Notably, the company has forged partnerships with prominent lenders nationwide, enabling it to meet the growing demands of its customer base effectively.
In addition to its robust online platform, Rentomojo has also set up offline experience centers strategically located across major pin codes in Bengaluru, enhancing its accessibility and customer engagement.
Sustained Growth and Profitability
Rentomojo’s impressive track record extends to its financial performance, boasting profitability for the past 10 consecutive quarters. According to startup data intelligence platform TheKredible, the company reported a revenue of Rs 121 crore in FY23, a substantial increase from Rs 98.6 crore in FY22. This growth trajectory culminated in a profit of Rs 6.19 crore during the same fiscal year, marking a significant turnaround from the Rs 13.5 crore loss reported in the previous period.
Competition and Industry Landscape
In the competitive landscape, Rentomojo faces competition from notable players such as Furlenco, Rentickle, and Cityfurnish, with Pepperfry also making strides in the market. In a notable development, Sleepwell-parent Sheela Foam acquired a 35% stake in Furlenco, valuing the Bengaluru-based company at approximately Rs 857 crore (over $100 million).
Pepperfry, a significant player in the industry, raised $23 million in funding in September of the previous year. Following the unfortunate passing of the company’s long-time CEO Ambareesh Murthy, Pepperfry announced the appointment of a new CEO, signaling its commitment to continued growth and innovation.
