Rentomojo is taking its rental model to the public markets with a ₹1,256-crore IPO, but the more interesting part of its pitch may be what happens to a sofa or refrigerator after the first customer is done with it.
The company’s RHP shows its FY2017 asset cohort has generated 5.12 times its original asset cost in revenue, as furniture and appliances are refurbished, redeployed and rented again. Chairperson, MD and CEO Geetansh Bamania has described this as a model where the business can keep extracting value from the same asset across multiple customer cycles.
The IPO, opening September 9, comprises ₹150 crore of fresh capital and ₹1,106 crore of an offer for sale, valuing the company at about ₹4,246 crore at the upper end of the price band.
“We did not have a primary need for capital,” managing director Geetansh Bamania told businessline, adding that the IPO proceeds would partly be used to reduce the company’s cost of capital by repaying higher-cost debt.
Its asset occupancy stood at around 83-84 per cent in FY26. Bamania said the company sees this as the sweet spot: pushing occupancy higher could mean inadequate inventory availability, while carrying too much inventory would leave capital tied up in under-utilised assets. Meanwhile, Rentomojo’s operating revenue rose 45.5 per cent to ₹387 crore in FY26, while profit after tax more than doubled to ₹104.3 crore from ₹43.1 crore a year earlier.
“Whenever we grow rapidly, there can be some pressure on the EBITDA margin,” Bamania said, describing Rentomojo as a “front-ended cash flow business” because delivery, repair and maintenance costs are incurred upfront when an asset is deployed.
That makes asset productivity increasingly important as the company expands beyond its established markets.
Rentomojo had 2.54 lakh live subscribers across 29 cities as of March 2026. Yet its revenue remains heavily concentrated: 98.19 per cent of FY26 operating revenue came from furniture and appliance rentals, while its top 10 cities accounted for 89.51 per cent of revenue, according to the RHP.
Bamania sees headroom even in Bengaluru, Delhi-NCR and Hyderabad, arguing that awareness of rental as an alternative to ownership remains low. The company is also entering markets such as Indore and Lucknow, partly following customers who relocated there.
The challenge, however, will be to replicate its asset economics as it moves into newer markets without having to disproportionately increase inventory, warehouses and logistics costs.
The IPO’s ₹150-crore fresh issue will allocate ₹70 crore towards repayment or prepayment of borrowings and ₹42.5 crore towards lease rentals or licence fees for warehouses and experience stores, with the remainder for general corporate purposes.
For a business built around renting out physical goods, the growth story, then, is as much about what happens after the first rental as it is about finding the next customer.