Rentomojo Sets the Stage for IPO as Furniture and Appliance Rental Platform Converts into Public Limited Company

Bengaluru-based furniture and appliance rental platform Rentomojo has taken a major step toward entering the public markets by converting itself into a public limited company. The move signals the company’s growing ambitions to launch an initial public offering (IPO) in the coming years and strengthen its presence in India’s rapidly evolving rental economy.

According to regulatory filings, the company’s board and shareholders approved a resolution to change its legal status from Rentomojo Private Limited to Rentomojo Limited. The decision involved removing the word “Private” from its name, a standard step required for companies planning to go public.

This structural change is part of Rentomojo’s broader preparations for a potential public listing, which industry reports suggest could take place around FY27 if market conditions remain favourable.

A Growing Consumer Rental Platform

Founded in 2014, Rentomojo operates at the intersection of consumer technology and lifestyle services. The platform allows users to rent furniture, home appliances, and other household essentials through a subscription-based model, offering flexibility to young professionals and urban renters who prefer access over ownership.

BusinessRazorpay Gets SEBI Nod For Rs 6,000 Cr IPO At $5 Bn ValuationBusinessCarlsberg India Files Updated IPO Prospectus For 86.42 Million Shares

Over the years, the company has expanded its offerings beyond furniture to include appliances and newer categories such as water purifiers. Today, the platform serves more than 2.2 lakh active subscribers, manages over 7.7 lakh rental products, and operates across 23 cities through a network of 71 experience stores.

The company’s growth reflects a broader shift in urban India where renting lifestyle products has become increasingly popular among millennials and young professionals who frequently relocate for work.

Strong Financial Performance Strengthens IPO Case

Rentomojo’s IPO ambitions are backed by strong financial growth over the past few years. The company has reported consistent profitability and rising revenues, which has helped it build a solid case for a public listing.

In FY25, the startup reported operating revenue of around ₹266 crore, reflecting about 38% year-on-year growth compared to the previous fiscal year. During the same period, its net profit surged nearly 92% to around ₹43 crore, highlighting improved operational efficiency and strong demand for its rental services.

The company also reported a strong improvement in operating performance, with EBITDA rising to ₹118.41 crore in FY25, up from ₹78.23 crore in FY24. This improvement reflects better operating leverage as the company scaled its subscriber base and product inventory.

Funding and Investor Backing

Rentomojo has attracted significant investor interest over the years. The company has raised more than ₹650 crore across multiple funding rounds from prominent investors including Accel, Chiratae Ventures, Bain Capital, Edelweiss Discovery Fund, and ValueQuest S.C.A.L.E. Fund.

Its most recent funding round included a $25 million investment led by Edelweiss, which provided additional capital to support expansion and operational growth.

Apart from venture investors, the company has also secured financing support from several banks and non-banking financial companies (NBFCs) to expand its rental inventory and strengthen supply chains.

The Road Ahead for Rentomojo

Rentomojo’s conversion into a public entity marks a crucial milestone in its journey toward becoming one of the first rental-focused startups in India to list on the stock market. Analysts believe the move could bring more visibility to India’s subscription-based rental economy and encourage similar businesses to explore public markets.

With steady profitability, expanding operations, and growing consumer demand for flexible lifestyle solutions, Rentomojo appears well positioned to test investor appetite in the coming years.

If the IPO materialises as expected, the company could set a benchmark for startups operating in the furniture and appliance rental sector, highlighting the viability of asset-light subscription models in India’s consumer tech ecosystem.