Rentomojo

Rentomojo operates as a leading technology-driven rental marketplace in India, focusing on providing affordable and flexible access to home products. The company's business model centers on the 'rental economy,' allowing users to subscribe to furniture and appliances, which appeals to the mobile urban population and millennials who prefer flexibility over ownership.

Its extensive product portfolio includes over 728,773 live products, ranging from beds, sofas, and wardrobes to essential appliances like refrigerators, washing machines, and water purifiers. To ensure quality and brand trust, the company partners with reputable brands such as Haier, Wakefit, Livpure, and Duroflex.

Operationally, Rentomojo maintains a significant physical footprint to support its digital interface. The company operates 67 experience stores and 21 warehouses spanning 444,486 square feet. This omnichannel approach allows the company to maintain a high standard of delivery and customer service across 22 cities.

As of 2025, the company has established itself as the largest online rental platform in India in terms of live subscribers and subscriptions, catering to 227,511 live subscribers. The company is promoted by Geetansh Bamania, who has steered the firm toward significant scale and profitability in the rental ecosystem.

The Rentomojo IPO is a Mainboard issue scheduled to open on September 9, 2026, and close on September 11, 2026, with listing on the BSE and NSE on September 17, 2026. The total issue size is approximately ₹1,255.57 Crores, featuring a price band of ₹384 to ₹404 per share. The structure is heavily weighted toward an Offer for Sale (OFS) of approximately ₹1,105.57 Crores, while the fresh issue component is relatively small at ₹150 Crores.

Proceeds from the fresh issue are earmarked for corporate debt reduction, with ₹70.00 Crores allocated for the repayment or prepayment of outstanding borrowings and interest, and ₹42.50 Crores designated for the payment of lease rentals and license fees for warehouses and experience stores.

Financial performance has shown an impressive upward trajectory. Revenue grew from ₹195.80 Crores in FY24 to ₹394.09 Crores in FY26. More notably, the Profit After Tax (PAT) surged from ₹22.41 Crores in FY24 to ₹104.30 Crores in FY26, reflecting an aggressive expansion in profitability and operational efficiency.

From a valuation perspective, the company reports a Basic EPS of ₹10.42 and a strong ROE of 43.51%. However, a critical point for investors is the absence of listed peer companies in India, making traditional P/E comparisons difficult and placing more weight on the company's internal growth metrics.

Investment strengths include its dominant market position in the rental sector, high ROCE of 25.34%, and a strong PAT margin of 26.95%. Conversely, the high proportion of OFS suggests significant promoter/early investor offloading, which can sometimes be viewed as a lack of confidence in future short-term upside.

Overall, Rentomojo presents a high-growth profile in a niche market. While the financial growth is compelling, investors should weigh the heavy OFS component and the lack of peer benchmarks before committing capital for the long term.