Online rental and subscription platform Rentomojo Ltd has received Sebi's final approval for its proposed initial public offering (IPO), clearing the way for the online furniture and home appliances rental platform to launch its share sale in the coming months. The regulator issued its final observation letter today, with the issuance of the final observation letter being a go-ahead to proceed with the IPO. The proposed IPO comprises a fresh issue of equity shares aggregating up to ₹150 crore and an Offer for Sale (OFS) of 28,399,567 equity shares by existing shareholders, as detailed in the draft red herring prospectus (DRHP). The regulator received the company's draft papers on April 1 and gave its observations on July 6, with the issuance of the final observation letter implying its approval to float the IPO. As per CNBC TV18, the company may also undertake a pre-IPO placement of up to ₹30 crore, and if completed, the size of the fresh issue will be reduced accordingly. The company filed the draft red herring prospectus with the market regulator in March this year.
According to the draft papers, the company proposes to utilize the net proceeds from the fresh issue towards repayment or prepayment, in full or in part, of certain outstanding borrowings along with accrued interest, payment of lease rentals or licence fees for its warehouses and experience stores, and general corporate purposes. The ₹150 crore fresh issue will be deployed strategically with ₹70 crore allocated towards repayment and prepayment of certain outstanding borrowings and ₹42.50 crore for in-house expenses including lease rental and license fee payments for warehouses and experience stores. The remaining amount will be allocated towards other general corporate purposes. For the six months ended September 30, 2025, the company posted revenue from operations of ₹176.61 crore and a profit after tax of ₹61.38 crore. In FY25, revenue from operations stood at ₹265.96 crore, while profit after tax was ₹43.11 crore. The IPO plans to raise ₹150 crore via the issue of fresh equity and an offer for sale of up to 28,399,567 equity shares with a face value of ₹1 per equity share. The proceeds from the fresh issue will be used to expand Rentomojo's offline footprint, set up new warehouses, repay certain borrowings and for general corporate purposes.
Rentomojo operates a technology-driven, full-stack direct-to-consumer online rental and subscription platform for furniture and home appliances, founded by promoter Geetansh Bamania and cofounder Ajay Nain. According to its draft papers, Rentomojo is India's largest online rental and subscription platform for home furniture and appliances, with an estimated 42%–47% share of the organised furniture and appliances rental market, excluding water purifiers, based on subscription revenue in FY25. As of September 30, 2025, the company had 2.28 lakh live subscribers across 22 cities, supported by 21 warehouses with around 4.44 lakh sq ft of warehousing space and a network of 67 experience stores. The platform offered 728,773 live furniture and appliance products on subscription through its omnichannel platform. The company follows an 11-touchpoint consumer lifecycle model—covering order placement, risk assessment, delivery, installation, monthly collections, relocation, repairs, upgrades, subscription contract transfers, reverse logistics and refunds. The company's technology-enabled operating model has helped maintain strong asset utilisation, with occupancy rates of 83.91% in the first half of FY26, compared with 82.82% in FY25, 86.43% in FY24 and 91.07% in FY23.
The IPO is being managed by Motilal Oswal Investment Advisors, Axis Capital, and IIFL Capital Services (formerly IIFL Securities) as the book-running lead managers, with KFin Technologies serving as the registrar to the offer. The company may consider a pre-IPO placement of up to ₹30 crore prior to filing its red herring prospectus. However, the IPO faces significant risks including revenue concentration risk, as over 95% of revenue is derived from furniture and appliance rentals, making it vulnerable to market fluctuations. Additional risks include raw material procurement fluctuations, subscriber retention challenges, cybersecurity breaches, dependence on third-party transport services, failure to pay off debt, and heavy customer concentration in tier-1 cities. The IPO-bound startup is embroiled in a legal dispute with its cofounder and former COO Nain, who moved the Bengaluru bench of the NCLT earlier this year alleging he was fraudulently induced into selling his stake in 2023 at a significantly undervalued price. He is seeking to block the IPO until the matter is resolved. The company, formerly known as Rentomojo Private Limited and Edunetwork Private Limited, is now operating as Rentomojo Ltd and is headquartered in Bengaluru, Karnataka.
