IPO closes on 11 Sep'26
Rentomojo Limited
Minimum Investment
₹ 14,948 / 37 shares
Our Verdict:
Avoid
- Rentomojo is India's largest online rental and subscription platform for home furniture and appliances by live subscribers and subscription revenue, serving 253,825 live subscribers across 29 cities; revenue from operations grew from ₹192.70 crore (FY24) to ₹386.99 crore (FY26), and PAT grew from ₹22.41 crore to ₹104.30 crore over the same period.
- Profitability has genuinely accelerated: PAT margin expanded from 11.63% (FY24) to 26.95% (FY26), and operating cash flow grew every year (₹91.57 crore to ₹172.87 crore), with the Company profitable in each year since Fiscal 2023 — a more consistent profitability trend than many other consumer/D2C-style businesses.
- Structural dependencies are concentrated but expected for the category: 97.90% of FY26 revenue comes from furniture/appliance rental itself, and the business remains concentrated in tier-1 and metropolitan markets, with its entire physical footprint (warehouses, experience stores, offices) held on leasehold or licensed terms rather than owned.
- Two disclosed operational matters are worth knowing: the Company's Statutory Auditors have included specific observations in the audited financial statements and CARO report for each of the last three fiscal years, and the Company experienced a fire at one of its warehouses in June 2026.
- Category leadership, accelerating and increasingly cash-generative profitability, and a founder-led team with strong venture backing support the fundamentals, and there is no directly comparable listed peer for valuation benchmarking, so the business needs to be judged on its own operating trajectory rather than relative multiples; the auditor observations and the recent warehouse fire are specific, disclosed matters worth understanding before assuming the growth and margin trends continue uninterrupted.
About the company
Founded in
16 Apr'12
Managing director
Geetansh Bamania
- Rentomojo operates a technology-driven, full-stack direct-to-consumer online rental and subscription platform for furniture and appliances in India, enabling subscribers to access home essentials through flexible subscription plans rather than large upfront purchases.
- As of March 31, 2026, the Company had 253,825 live subscribers across 29 cities in India, and was the largest online rental and subscription platform for home furniture and appliances by live subscribers and subscription revenue, per the Redseer Report.
- The Company operates through an omni-channel model combining an online ordering platform with 82 physical experience stores, supported by 20 warehouses and 5 office premises as of March 31, 2026; it does not own or operate any manufacturing facility.
- Promoter: Geetansh Bamania (Chairperson, Managing Director & CEO), an IIT Madras graduate with prior experience at KPMG and Flipkart; the Company is also backed by investors including Accel, Edelweiss, ValueQuest, Chiratae Capital and Madison India.
STRENGTHS
- Largest Online Furniture and Appliance Rental Platform: The largest online rental and subscription platform for home furniture and appliances in India by live subscribers and by subscription revenue, per the Redseer Report.
- Revenue and Profit Growth: Revenue from operations grew from ₹192.70 crore (FY24) to ₹386.99 crore (FY26); PAT grew from ₹22.41 crore to ₹104.30 crore over the same period, with PAT growth accelerating sharply in FY26.
- § Consistently Profitable Since FY23: The Company has been consistently profitable since Fiscal 2023, supported by predictable recurring subscription revenue and high return on capital employed.
- Omni-Channel, Full-Stack Operating Model: Combines an online ordering platform with 82 physical experience stores across 29 cities, alongside in-house control over procurement, warehousing, logistics and refurbishment.
- Founder-Led with Marquee Investor Backing: Led by founder Geetansh Bamania (IIT Madras, ex-KPMG and Flipkart, Forbes 30 Under 30 Asia 2016), backed by investors including Accel, Edelweiss, ValueQuest, Chiratae Capital and Madison India.
RISK FACTORS
- Revenue Concentration in Core Rental Category: Furniture and appliance rental (including recurring subscription revenue) made up 97.90% of FY26 revenue from operations; any decline in demand for renting such products would directly affect results.
- Auditor Observations Disclosed: The Statutory Auditors have included certain observations on the audited financial statements and in their CARO 2020 report for FY24, FY25 and FY26.
- Warehouse Fire Incident: The Company experienced a fire at one of its warehouses in June 2026; similar incidents, natural calamities or operational disruptions could damage assets, suspend operations or increase costs.
- Geographic Concentration in Tier-1 and Metro Markets: Revenue remains concentrated in key tier-1 and metropolitan markets in India, exposing the Company to adverse local developments.
- Entirely Leasehold Property Base: The Registered Office, Corporate Office, all 82 experience stores and all 20 warehouses are held on leasehold or licensed premises, with no owned real estate; loss or non-renewal of these arrangements could disrupt operations.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ ₹1,255.57 crore
Fresh Issue
₹ ₹150 crore
OFS
₹ ₹1,105.57 crore
Price range
₹ 384 - 404
Lot size
37 shares
Issue Objective
- Net Proceeds from the Fresh Issue (₹150 crore) are proposed to be used for: (i) repayment/prepayment of certain outstanding borrowings (~₹70 crore); (ii) payment of lease rental/licence fee for warehouses and experience stores (~₹42.5 crore); and (iii) general corporate purposes (balance amount, capped at 25% of Gross Proceeds).
Dates
Bidding open
9 Sep'26
Bidding close
11 Sep'26
Allotment date
15 Sep'26
Refund date
16 Sep'26
Listing
17 Sep'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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