Online furniture rental startup RentoMojo has nearly reached the INR 200 crore mark in operating revenue for the financial year 2023-24 (FY24),͏͏ driven͏͏ by͏͏ robust͏͏ customer͏͏ demand͏͏ and͏͏ enhanced͏͏ efficiency͏͏ from͏͏ automation.
The͏͏ Bengaluru-based͏͏ startup͏͏ recorded͏͏ a͏͏ 60%͏͏ year-on-year͏͏ rise͏͏ in͏͏ operating͏͏ revenue,͏͏ reaching͏͏ INR͏͏ 193͏͏ crore͏͏ in͏͏ FY24.
PAT͏͏ Triples͏͏ Year-on-Year:
Furthermore,͏͏ RentoMojo͏͏ achieved͏͏ a͏͏ profit͏͏ after͏͏ tax͏͏ (PAT)͏͏ of͏͏ INR͏͏ 22͏͏ crore͏͏ in͏͏ FY24,͏͏ reflecting͏͏ more͏͏ than͏͏ a͏͏ threefold͏͏ increase͏͏ from͏͏ INR͏͏ 6͏͏ crore͏͏ the͏͏ year͏͏ before,͏͏ supported͏͏ by͏͏ strong͏͏ business͏͏ growth͏͏ and͏͏ a͏͏ controlled͏͏ rise͏͏ in͏͏ expenses.
The͏͏ normalised͏͏ profit͏͏ after͏͏ tax͏͏ (PAT),͏͏ excluding͏͏ extraordinary͏͏ items,͏͏ was͏͏ INR͏͏ 28͏͏ crore͏͏ for͏͏ the͏͏ year͏͏ under͏͏ review.
Significant͏͏ Increase͏͏ in͏͏ EBITDA:
The͏͏ company͏͏ experienced͏͏ a͏͏ 142%͏͏ year-on-year͏͏ increase͏͏ in͏͏ EBITDA,͏͏ reaching͏͏ INR͏͏ 66͏͏ crore͏͏ during͏͏ the͏͏ reported͏͏ period,͏͏ as͏͏ its͏͏ focus͏͏ on͏͏ automation͏͏ improved͏͏ operational͏͏ efficiency͏͏ and͏͏ enabled͏͏ it͏͏ to͏͏ scale͏͏ an͏͏ occupancy-driven͏͏ business.
Alongside͏͏ the͏͏ increase͏͏ in͏͏ the͏͏ average͏͏ number͏͏ of͏͏ items͏͏ deployed,͏͏ longer͏͏ subscription͏͏ periods͏͏ and͏͏ high͏͏ repeat͏͏ rates͏͏ also͏͏ bolstered͏͏ recurring͏͏ revenue͏͏ streams͏͏ for͏͏ RentoMojo.
Competitive͏͏ Edge͏͏ Through͏͏ Innovative͏͏ Offerings:
RentoMojo͏͏ also͏͏ gained͏͏ an͏͏ advantage͏͏ from͏͏ its͏͏ non-committal͏͏ subscription͏͏ models͏͏ and͏͏ bundled͏͏ service͏͏ offerings,͏͏ such͏͏ as͏͏ free͏͏ delivery͏͏ and͏͏ free͏͏ repairs,͏͏ which͏͏ provided͏͏ the͏͏ company͏͏ with͏͏ a͏͏ competitive͏͏ edge͏͏ over͏͏ its͏͏ rivals.
Founded͏͏ in͏͏ 2014͏͏ by͏͏ Geetansh͏͏ Bamania,͏͏ Achal͏͏ Mittal,͏͏ Ajay͏͏ Nain,͏͏ and͏͏ Gautam͏͏ Adukia,͏͏ RentoMojo͏͏ offers͏͏ leasing͏͏ of͏͏ consumer͏͏ appliances,͏͏ furniture,͏͏ and͏͏ furnishing͏͏ products͏͏ via͏͏ its͏͏ app͏͏ and͏͏ website.
The͏͏ Bengaluru-based͏͏ company͏͏ operates͏͏ in͏͏ over͏͏ 19͏͏ cities͏͏ and͏͏ has͏͏ served͏͏ more͏͏ than͏͏ 400,000͏͏ customers͏͏ since͏͏ its͏͏ launch.͏͏ It͏͏ also͏͏ claims͏͏ to͏͏ have͏͏ achieved͏͏ profitability͏͏ in͏͏ October͏͏ 2021.
“We͏͏ have͏͏ experienced͏͏ rapid͏͏ growth͏͏ by͏͏ utilising͏͏ automation͏͏ in͏͏ a͏͏ highly͏͏ operationally͏͏ intensive͏͏ business,͏͏ alongside͏͏ disciplined͏͏ cost͏͏ management,͏͏ which͏͏ has͏͏ facilitated͏͏ sustainable͏͏ growth͏͏ and͏͏ enhanced͏͏ profitability.͏͏ With͏͏ the͏͏ coming͏͏ decades͏͏ anticipated͏͏ to͏͏ see͏͏ significant͏͏ economic͏͏ growth͏͏ driven͏͏ by͏͏ urbanisation͏͏ and͏͏ rising͏͏ opportunities͏͏ in͏͏ metros͏͏ and͏͏ Tier͏͏ I͏͏ and͏͏ II͏͏ cities͏͏ for͏͏ young,͏͏ mobile͏͏ Indians,͏͏ we͏͏ remain͏͏ optimistic͏͏ about͏͏ the͏͏ shift͏͏ towards͏͏ flexible͏͏ solutions͏͏ rather͏͏ than͏͏ ownership,”͏͏ said͏͏ Geetansh͏͏ Bamania,͏͏ co-founder͏͏ and͏͏ CEO͏͏ of͏͏ RentoMojo.
Preparing͏͏ for͏͏ Stock͏͏ Market͏͏ Debut:
This͏͏ comes͏͏ as͏͏ RentoMojo͏͏ is͏͏ preparing͏͏ for͏͏ its͏͏ stock͏͏ market͏͏ debut.͏͏ In͏͏ an͏͏ interview͏͏ with͏͏ ET͏͏ last͏͏ month,͏͏ CEO͏͏ Geetansh͏͏ Bamania͏͏ indicated͏͏ that͏͏ the͏͏ company͏͏ is͏͏ aiming͏͏ for͏͏ a͏͏ public͏͏ listing͏͏ within͏͏ the͏͏ next͏͏ 18͏͏ months.
Continue͏͏ Exploring:͏͏ Furniture rental startup RentoMojo set͏͏ to͏͏ file͏͏ for͏͏ IPO͏͏ in͏͏ the͏͏ next͏͏ 18͏͏ months
In͏͏ the͏͏ lead-up͏͏ to͏͏ its͏͏ potential͏͏ initial͏͏ public͏͏ offering͏͏ (IPO),͏͏ RentoMojo͏͏ recently͏͏ secured͏͏ an͏͏ undisclosed͏͏ amount͏͏ from͏͏ ValueQuest͏͏ Scale͏͏ Fund͏͏ during͏͏ its͏͏ Series͏͏ D͏͏ funding͏͏ round,͏͏ which͏͏ included͏͏ a͏͏ combination͏͏ of͏͏ primary͏͏ equity͏͏ infusion͏͏ and͏͏ secondary͏͏ share͏͏ sales.
In͏͏ February,͏͏ RentoMojo͏͏ raised͏͏ INR͏͏ 210͏͏ crore͏͏ ($25͏͏ million)͏͏ in͏͏ its͏͏ Series͏͏ D͏͏ and͏͏ D1͏͏ funding͏͏ rounds,͏͏ led͏͏ by͏͏ the͏͏ Edelweiss͏͏ Discovery͏͏ Fund͏͏ Series͏͏ –͏͏ I.
To͏͏ date,͏͏ the͏͏ startup͏͏ has͏͏ raised͏͏ over͏͏ $70͏͏ million͏͏ in͏͏ total͏͏ funding͏͏ and͏͏ counts͏͏ prominent͏͏ investors͏͏ like͏͏ Bain͏͏ Capital,͏͏ Accel,͏͏ and͏͏ IDG͏͏ Capital͏͏ among͏͏ its͏͏ backers.
Competitive͏͏ Landscape͏͏ in͏͏ Furniture Rental͏͏ Market:
RentoMojo͏͏ competes͏͏ with͏͏ Furlenco,͏͏ Fabrento,͏͏ Rentickle,͏͏ and͏͏ Cityfurnish͏͏ in͏͏ the͏͏ Indian͏͏ furniture͏͏ market,͏͏ which͏͏ is͏͏ expected͏͏ to͏͏ grow͏͏ to͏͏ nearly͏͏ $30͏͏ billion͏͏ by͏͏ 2029,͏͏ according͏͏ to͏͏ a͏͏ report.
