Rentomojo Limited is set to enter the Indian stock market with its Initial Public Offering (IPO) in September 2026. The Bengaluru-based company operates a technology-driven rental and subscription platform for furniture, appliances and other household products. Instead of selling products through a conventional one-time purchase model, Rentomojo allows customers to access products through recurring rental subscriptions. The company has fixed its IPO price band at ₹384 to ₹404 per equity share, with the issue scheduled to open on September 9, 2026 and close on September 11, 2026. The total IPO size is approximately ₹1,255.57 crore, making Rentomojo one of the more prominent consumer-internet IPOs in the current primary-market pipeline.
Rentomojo IPO Details
| Particulars | Details |
|---|---|
| Company | Rentomojo Limited |
| IPO Type | Mainboard IPO |
| Issue Type | Book Built |
| Price Band | ₹384 – ₹404 per share |
| IPO Open Date | September 9, 2026 |
| IPO Close Date | September 11, 2026 |
| Total Issue Size | ₹1,255.57 crore |
| Fresh Issue | ₹150 crore |
| Offer for Sale | Approximately 2.73 crore shares |
| OFS Value | Approximately ₹1,105.57 crore |
| Face Value | ₹1 per share |
| Lot Size | 37 shares |
| Minimum Investment | ₹14,948 |
| Anchor Investor Date | September 8, 2026 |
| Basis of Allotment | September 15, 2026 |
| Refund Initiation | September 16, 2026 |
| Demat Credit | September 16, 2026 |
| Tentative Listing Date | September 17, 2026 |
| Listing Exchanges | BSE & NSE |
| QIB Allocation | 50% |
| NII Allocation | 15% |
| Retail Allocation | 35% |
| Employee Reservation | ₹2 crore |
| Employee Discount | ₹20 per share |
| Lead Managers | Motilal Oswal Investment Advisors, Axis Capital, IIFL Capital Services |
| Registrar | KFin Technologies |
The IPO consists of a ₹150 crore fresh issue and a significantly larger offer-for-sale component. Existing investors including Accel India, Edelweiss, IDG Ventures India, ValueQuest, Madison India and GMO, along with promoter Geetansh Bamania, are selling shares through the OFS. Consequently, a substantial majority of the total IPO proceeds will go to selling shareholders rather than directly to Rentomojo.
What Does Rentomojo Do?
Rentomojo operates an online rental and subscription platform focused primarily on furniture and household appliances. Customers can rent products such as beds, sofas, tables, chairs, refrigerators, washing machines, televisions and other home essentials instead of purchasing them outright.
The company’s model is particularly suited to consumers who want flexibility, lower upfront costs or temporary access to household products. This can be relevant for young professionals, students, migrants, people relocating between cities and consumers who prefer not to make large upfront purchases for furniture and appliances.
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Unlike a marketplace that simply connects buyers and sellers, Rentomojo owns or controls a significant portion of the rental asset base and manages multiple stages of the product lifecycle. Its operations include procurement, deployment, delivery, installation, maintenance, collection, refurbishment and redeployment of products.
This creates a recurring-revenue model because a single product can potentially generate rental income from multiple customers over its useful life. The economics therefore depend not only on acquiring customers but also on how efficiently the company keeps its assets occupied and productive.
Rentomojo’s Subscription-Based Business Model
The company’s subscription model is one of the most important aspects of the IPO story. Instead of recognising revenue from a product sale at one point in time, Rentomojo generates recurring rental income throughout the subscription period.
This model can provide greater revenue visibility when customers remain subscribed for extended periods. The company can also benefit from repeat customers because retaining an existing subscriber may require less acquisition spending than attracting a completely new customer.
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According to company and industry information, Rentomojo was the largest technology-driven online rental and subscription platform for home furniture and appliances in India based on live subscribers. The company has also been estimated to hold a significant share of the organised rental market by subscription revenue.
However, the subscription model also creates an asset-heavy business structure. Rentomojo has to purchase and maintain furniture and appliances before generating rental income from them. This means the company must carefully manage asset utilisation, depreciation, refurbishment and customer demand.
Customer and Geographic Presence
Rentomojo has built a substantial presence in India’s urban markets. As of September 30, 2025, the company had approximately 2.28 lakh live subscribers across 22 cities, supported by 21 warehouses covering around 4.44 lakh square feet. It also operated 67 experience stores and had approximately 7.29 lakh live products in its rental portfolio at that time.
By March 2026, the company had expanded its physical infrastructure to 20 warehouses and 82 experience stores. These facilities operate on a leasehold basis and support the company’s distribution, customer experience and asset-management operations.
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The company’s concentration in urban markets is both a strength and a risk. Large cities provide a strong customer base for rental furniture and appliances because of higher mobility, changing lifestyles and a larger population of young professionals. At the same time, an economic slowdown or weaker employment conditions in these markets could affect customer demand.
Rentomojo’s Asset Lifecycle Advantage
One of the key differentiators of the business is its ability to manage the full lifecycle of rental products. Once an item is returned, it can potentially be inspected, repaired, refurbished and rented to another customer.
This creates the possibility of generating revenue from the same asset over several rental cycles. If the asset remains in good condition and achieves high occupancy, its economic life can extend well beyond the initial customer contract.
Asset occupancy is therefore a critical metric for the business. CRISIL has highlighted the importance of maintaining occupancy above 80% for achieving operating efficiencies and economies of scale. It also noted that Rentomojo’s asset occupancy rate was approximately 83% for the period referenced in its rating rationale.
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The ability to maintain high utilisation while controlling refurbishment, logistics and depreciation costs will be an important determinant of long-term profitability.
Rentomojo IPO Financial Performance
Rentomojo has shown strong financial growth in recent years. Revenue from operations increased from approximately ₹265.96 crore in FY25 to ₹387 crore in FY26, representing growth of around 45.5%. During the same period, profit after tax increased from approximately ₹43.1 crore to ₹104.2 crore.
The company also reported EBITDA of approximately ₹163.5 crore in FY26 compared with ₹118.4 crore in FY25. EBITDA margin, however, declined from approximately 43.6% to 41.5%, showing that profitability increased in absolute terms but operating margins moderated slightly.
| Financial Metric | FY25 | FY26 |
|---|---|---|
| Revenue from Operations | ₹265.96 Cr | ₹387 Cr |
| EBITDA | ₹118.4 Cr | ₹163.5 Cr |
| EBITDA Margin | 43.6% | 41.5% |
| Profit After Tax | ₹43.1 Cr | ₹104.2 Cr |
The sharp increase in FY26 PAT needs to be interpreted carefully because the company benefited from a one-time tax credit of approximately ₹36.6 crore during the year. Therefore, the reported 142% increase in PAT does not represent the entire underlying improvement in recurring profitability.
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Even after considering this exceptional factor, the company has demonstrated a significant improvement in its earnings profile. The combination of strong revenue growth, positive EBITDA and recurring subscription revenue makes the financial trajectory an important part of the IPO story.
Rentomojo Debt Position
Rentomojo’s asset-heavy model requires substantial capital investment. The company uses borrowings alongside equity capital to build and maintain its rental asset base.
As of June 2026, total borrowings were approximately ₹258.3 crore. The company intends to use ₹70 crore from the fresh IPO proceeds for repayment or prepayment of certain debt.
Debt reduction could help lower finance costs and improve the company’s financial flexibility. However, because the business continues to require investment in rental assets, warehouses and operational infrastructure, the company may continue to require external financing as it expands.
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CRISIL has maintained a BBB+/Stable rating on Rentomojo’s long-term bank facilities and has highlighted the company’s established market position, operating efficiency and financial risk profile while also identifying the capital-intensive nature of its operations as a key weakness.
Use of IPO Proceeds
The ₹150 crore fresh issue has three principal uses. Approximately ₹70 crore is proposed for repayment or prepayment of certain borrowings. Another ₹42.5 crore is intended for lease rentals or licence fees relating to warehouses and experience stores. The remaining amount is planned for general corporate purposes.
This means the fresh issue is largely directed toward balance-sheet and operating obligations rather than aggressive expansion capex.
The debt repayment component could strengthen the company’s financial position, while the lease-related allocation supports the physical infrastructure required for the rental network.
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Rentomojo IPO Valuation
At the upper end of the ₹404 price band, Rentomojo’s market capitalisation is approximately ₹4,006 crore according to the latest issue details. This represents a substantial increase from the company’s last private funding valuation of roughly ₹850–₹900 crore in 2024.
The significant increase in implied valuation reflects the company’s rapid growth and transition from a private startup into a profitable public-market business. However, it also means investors are being asked to value the company at a substantial premium to its earlier private-market valuation.
The valuation should therefore be assessed against FY26 earnings, recurring subscription revenue, EBITDA margins, asset utilisation, growth prospects and the capital required to expand the rental fleet.
Rentomojo IPO GMP
Grey Market Premium, or GMP, is an unofficial indicator of market sentiment before an IPO lists. It is not regulated by SEBI or the stock exchanges and can change rapidly depending on demand and overall market conditions.
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Investors should therefore avoid treating GMP as a guaranteed indicator of listing gains. For Rentomojo, the company’s revenue growth, profitability, asset utilisation, customer retention and valuation are more important factors for evaluating the IPO.
Strengths of Rentomojo
One of Rentomojo’s biggest strengths is its recurring subscription-based revenue model. Unlike conventional retail businesses that depend on continuous one-time transactions, the company can generate recurring revenue from subscribers over the duration of their rental contracts.
The company also has significant scale within India’s organised furniture and appliance rental market. Its large subscriber base, extensive product portfolio, warehouses and experience stores provide an established operating platform that would be difficult for a small new entrant to replicate immediately.
Another potential advantage is the company’s integrated asset lifecycle management. Procurement, logistics, maintenance, refurbishment and redeployment can allow Rentomojo to extract multiple revenue cycles from individual assets.
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The financial performance is another positive factor. Revenue grew by more than 45% in FY26, while EBITDA increased significantly and the company remained profitable. This is notable because several consumer-internet businesses historically focused on growth before achieving profitability.
Key Risks to Consider
The biggest structural risk is the capital-intensive nature of the rental model. Rentomojo needs to continuously invest in furniture and appliances to expand its inventory. If customer demand does not grow at the same pace, asset utilisation could fall and returns on invested capital could weaken.
Asset depreciation and refurbishment are also important considerations. Furniture and appliances can deteriorate through repeated use, while technology products can become obsolete relatively quickly. The company therefore needs efficient asset lifecycle management to maintain profitability.
Customer retention is another key risk. The economics of the subscription model depend heavily on customers continuing to pay rent and renewing or extending subscriptions. Higher customer churn could increase acquisition costs and reduce the lifetime revenue generated from each subscriber.
The company is also exposed to customer payment defaults. Rental businesses need effective credit assessment and collection systems because delays or defaults can affect cash flows while the company continues to bear the cost of owning and maintaining the underlying assets.
Geographic concentration is another factor. Rentomojo’s customer base is concentrated primarily in metro and Tier-I and Tier-II urban markets. A slowdown in these economies or weaker employment conditions could affect demand for rental products. CRISIL has specifically identified geographical concentration as one of the company’s business risks.
Competition also remains significant. Customers can choose between renting and buying products, while traditional furniture retailers, appliance sellers and other rental platforms compete for the same consumer spending. Changes in consumer preference toward ownership or alternative rental services could affect growth.
Technology and cybersecurity represent additional risks because the company’s business depends heavily on its digital platform. System disruptions, cyberattacks, data breaches or technology failures could affect customer transactions and operations. The company’s IPO disclosures also highlight the need to continuously innovate its platform and operational capabilities to remain competitive.
Corporate and Legal Considerations
Investors should also be aware of a legal matter disclosed in the company’s rating information. A petition was filed before the Bengaluru NCLT in March 2026 by Ajay Nain relating to a past share sale transaction. The petition seeks various forms of relief, including restoration of earlier shareholding and other measures. CRISIL stated that the petition had not been admitted at the time of its May 2026 rating rationale and that it would continue to monitor developments.
Such matters do not necessarily determine the investment outcome, but they are relevant when assessing a newly listed company and should be followed through the company’s final offer documents and subsequent disclosures.
Rentomojo IPO: Overall Picture
Rentomojo presents a differentiated IPO story within India’s consumer and technology sector. The company has built a sizeable furniture and appliance rental platform around recurring subscriptions rather than conventional one-time product sales. Its subscriber base, product portfolio, warehouses, experience stores and integrated asset-management operations provide a foundation for further expansion.
The recent financial performance is particularly notable. Revenue increased approximately 45.5% to ₹387 crore in FY26, EBITDA rose to around ₹163.5 crore and reported PAT reached ₹104.2 crore. However, the PAT figure was supported partly by a one-time tax credit, while EBITDA margins moderated compared with FY25.
The IPO also has a large OFS component. Of the approximately ₹1,255.57 crore offering, only ₹150 crore represents fresh capital for the company, while approximately ₹1,105.57 crore comes through the sale of shares by existing shareholders. Investors should therefore recognise that the majority of the IPO proceeds will not strengthen Rentomojo’s balance sheet.
At ₹384–₹404 per share, the IPO implies a valuation of roughly ₹4,006 crore at the upper price band. This places significant importance on the company’s ability to maintain strong revenue growth, high asset utilisation, recurring customer relationships and attractive operating margins.
Rentomojo IPO will open for subscription on September 9, 2026 and close on September 11, 2026. The basis of allotment is expected on September 15, refunds and demat credit on September 16, and the shares are expected to list on September 17, 2026 on BSE and NSE.
Disclaimer
This article is intended for educational and informational purposes only and should not be considered investment, financial or trading advice. IPO investments involve market risks, and investors should carefully study the company’s offer documents, financial performance, valuation, business risks and other relevant information before making any investment decision. Past performance does not guarantee future results. Onetrader does not guarantee IPO listing gains or future returns.
