Bengaluru-based furniture and appliance rental platform Rentomojo, which recently filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI), is set to report profit for the fourth straight year in FY26, as per market sources.
Rentomojo DRHP shows that the company’s net profit jumped to INR 43.10 crore in FY25 from INR 6.20 crore in FY23. The company’s EBITDA and restated profit after tax (PAT) stood at INR 73.35 crore and INR 61.38 crore, respectively, for H1 FY26. Likewise, revenue increased to INR 265.96 crore in FY25 from INR 120.10 crore in FY23. The figures stood at INR 176.61 crore for the H1 FY26.
The growth came at a time when global markets are grappling with geopolitical tensions. Market watchers believe that consumers defer high-value purchases such as furniture and appliances, increasing adoption of flexible rental solutions in uncertain times.
The platform converts large upfront purchases into affordable, recurring subscriptions, creating stable revenue visibility and strong unit economics, as per market sources.
In growth periods, job mobility and urban migration rise, driving demand from customers setting up temporary homes in new cities. As a result, rental demand expands both during slowdowns and periods of economic growth, creating a structurally a-cyclical category.
The upcoming IPO of Rentomojo is a mix of a fresh issuance of shares valued at INR 150 crore and an offer-for-sale (OFS) component of nearly 2.84 crore shares.
“We are one of the few Indian D2C product commerce brands and platforms to have demonstrated consistent profitability, over the last three fiscals supported by efficient unit economics, high asset utilisation, efficient capital allocation and a multi-cycle asset-lifecycle model that extends product life and enhances margins,” the company said in DRHP.
With a presence across 22 cities with 21 warehouses, the company had 4,44,486 sq. ft. of warehousing space as of 30 September 2025. At present, there are no listed companies in India or globally that operate under a comparable business model to Rentomojo.
According to IPO Central’s data, the upcoming IPO pipeline has crossed the INR 2.80 lakh crore mark, and with new filings emerging regularly, this figure continues to expand. As of 31 March 2026, 147 companies have secured IPO approval, while 82 companies are currently awaiting approval. If this momentum continues, the upcoming 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.
