India’s upcoming IPO pipeline, which stands at approximately INR 2.6 lakh crore, is shifting towards the new-age consumer-tech platforms. In this context, furniture and appliance rental platform Rentomojo has submitted its issue papers to the Securities and Exchange Board of India (SEBI). Rentomojo IPO aims to raise funds through a combination of a fresh issue of INR 150 crore and an offer for sale of 2.84 crore equity shares.
The IPO is being managed by Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services, while KFin Technologies is the registrar of the offer.
Rentomojo IPO: Business Overview
Rentomojo operates as a tech-driven, full-stack D2C online rental and subscription platform for furniture and appliances in India. The company enables consumers to access essential home products such as beds, sofas, refrigerators, washing machines, and water purifiers through flexible monthly subscription plans.
As of September 2025, the company is a market leader in the organised rental segment, with over 2,27,511 live subscribers across 22 cities. Furthermore, the company has repeated customer rate stands at 52.18%. Rentomojo operates 67 experience stores, which shows the strength of its omnichannel presence and customer engagement.
Rentomojo follows an integrated asset lifecycle model, which includes procurement, refurbishment, servicing, logistics, and redeployment. This strategy provides a high asset utilisation rate, seamless delivery and a hassle-free customer experience.
Rentomojo offers a diversified portfolio of over 7.28 lakh live products and maintains an occupancy rate of over 80%+. It shows the strong demand and efficient asset management of the company.
Rentomojo IPO: Financial Performance
| Particulars | FY23 | FY24 | FY25 | H1 FY26 |
|---|---|---|---|---|
| Revenue from Operations | 120.10 | 192.70 | 265.96 | 176.61 |
| Expenses | 119.46 | 173.39 | 228.86 | 150.26 |
| EBITDA | 52.9 | 78.1 | 118.4 | 73.3 |
| EBITDA Margin (%) | 42.7 | 39.9 | 43.5 | 41.0 |
| PAT | 4.41 | 22.41 | 43.11 | 61.38 |
Key Insights
- The company’s revenue growt at ~49% CAGR between the period FY23–FY25, it is the highest among peers in D2C segment
- Rentomojo’s EBITDA margins are ~40%+, which shows strength in unit economics
- Its PAT growth remains over 200%
- H1 FY26 PAT already surpassed FY25 PAT, signalling strong growth momentum
Notably, Rentomojo is among the few D2C platforms in India demonstrating consistent profitability with high return ratios.
Rentomojo IPO: Use of Funds
The company intends to utilise fresh issue proceeds towards:
- Repayment/prepayment of borrowings (INR 70 crore)
- Lease payments for warehouses and experience stores (INR 42.5 crore)
- General corporate purposes
Rentomojo IPO: Strengths & Positioning
- Market Leadership in Rental Segment: Rentomojo commands ~42–47% market share in the organized furniture and appliance rental segment, with the largest subscriber base in India.
- Recurring Revenue Model: The company operates on a subscription-based model, ensuring predictable cash flows and strong revenue visibility. The company has a returning customer rate of 52.18%.
- Full-Stack Operating Model: Its integrated e-commerce, subscription, and re-commerce flywheel enables multi-cycle asset monetisation and high capital efficiency.
- Strong Unit Economics: High EBITDA margins (~40%+) and asset utilisation drive superior profitability compared to traditional D2C models.
- Technology-Led Platform: Proprietary ML-based underwriting, asset tracking, and logistics optimisation systems enhance operational efficiency.
- Acyclical Demand Profile: The business benefits both during economic slowdowns (shift to renting) and expansions (urban mobility growth).
Final Words
In short, Rentomojo holds a strong position in the emerging rental and subscription economy. The company’s unique aspects include the combination of scale, profitability, and structural growth, which is very rare in the D2C economy. Its financial performance has been robust, with strong revenue growth, expanding margins, and improving return ratios. The company’s full-stack model and multi-cycle asset monetisation provide a significant competitive advantage and enhance capital efficiency. However, the efficient management of working capital and scaling operations sustainably will be key to going forward.
According to IPO Central’s data, the upcoming IPO pipeline has crossed the INR 2.6 lakh crore mark, and with new filings emerging regularly, this figure continues to expand. As of 28 March 2026, 147 companies have secured IPO approval, while 64 companies are currently awaiting approval. If this momentum continues, the IPO pipeline could soon surpass the INR 3 lakh crore mark. Since the beginning of 2026, IPOs worth INR 18,530.04 crore have already hit the market.
Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.
