Furniture and home electronics rental startup Rentomojo is expected to go public at a valuation of Rs 4,246 crore, based on the upper end of its Rs 384-404 price band announced on Friday. Its post-money IPO valuation is about fivefold higher than its last valuation of Rs 850-900 crore in a private fundraise in 2024.Rentomojo is raising Rs 150 crore in fresh capital and investors such as Accel, Chiratae Ventures, and ValueQuest are selling shares worth Rs 1,106 crore via an offer for sale (OFS). This brings the total issue size to about Rs 1,256 crore.Early investors like Accel and Chiratae Ventures are sitting on significant paper gains of up to 8.6x considering the upper end of the price band. Paper gains refer to unrealised capital gains based on the price of a stock.ETtech
Accel could make up to Rs 317 crore and Chiratae Ventures could make up to Rs 197 crore in the OFS. Other investors like Madison India Capital could see 7.2x returns, or Rs 97 crore.Founder and promoter Geetansh Bamania holds a 14.7% stake, worth Rs 602 crore at the upper end of the price band. He is selling up to 849,175 shares, or about a 0.8% stake, and is expected to realise roughly Rs 34 crore from the OFS.“The business is now in its fourth year of profitability, we don't need to raise large amounts of primary capital," he said, adding that key shareholders including Accel, Edelweiss, Chiratae, and ValueQuest will continue to own meaningful stake even after the IPO.FY26 earningsRentomojo’s net profit surged nearly 142% to Rs 104.3 crore in FY26, up from Rs 43 crore in the previous fiscal, thanks to a one-time deferred tax credit of Rs 36.6 crore.Meanwhile, its operating revenue grew 45.5% to Rs 387 crore in FY26 from Rs 266 crore in FY25, driven by addition of new subscribers.Including other income of Rs 7 crore, its total income for FY26 stood at Rs 394 crore. Total expenses increased 41.5% to Rs 323.9 crore in FY26, compared to Rs 228.9 crore in FY25, led by higher operating, logistics, and employee costs.Founded by Bamania and Ajay Nain in 2014, Rentomojo operates a furniture, appliance, and home essentials rental platform. So far, it has raised $45 million from the likes of Accel, Chiratae Ventures, and Bain Capital.The Bengaluru-based company has 20 warehouses and 82 offline stores across 29 cities, per its red herring prospectus (RHP).“We have 55% market share in terms of subscriber base. With 2.5 lakh active subscribers, we generate strong network effects and brand recall,” Bamania told ET. “Our repeat rate is 45-50% and the organic traffic is 60-70%, among the highest in the industry. This helps us maintain the customer acquisition cost well within limits.”Rentomojo’s IPO will open for subscription on September 9 and close on September 11.
