- Accel-backed home-rental disruptor fixes ₹384–404 price band as subscription economy heads to Dalal Street
- Issue opens September 9; anchor bidding on September 8; listing slated for September 17
- ₹150 crore fresh issue to fund debt repayment, warehouse and experience-store leases
- ₹1,105.57 crore OFS gives early investors an exit window
- PAT soars 142% to ₹104.2 crore as FY26 revenue jumps 45.5% to ₹387 crore
- 253,825 subscribers across 29 cities; company commands 42–47% of organised online rental market
R MANICKAVASAGAM
AHMEDABAD, SEPT 8
What began as a way to furnish a home without buying everything in it is now seeking a valuation of nearly ₹4,200 crore. Bengaluru-based, Accel-backed Rentomojo is taking its furniture and home-appliance rental model to Dalal Street with a ₹1,255.57-crore IPO, betting that India’s fast-growing subscription economy can turn rented living into a scalable, profitable business.
Rentomojo has fixed the price band at ₹384–404 per equity share, with the three-day public issue opening on September 9 and closing on September 11. Anchor investors will bid on September 8, ahead of the public issue.
At the upper end of the band, the IPO will value the company at about ₹4,200 crore, putting a sizeable public-market price tag on a business built around a deceptively simple proposition — use what you need, subscribe for it and return it when you no longer do.
₹150 crore fresh capital, ₹1,105.57 crore OFS
The IPO comprises a fresh issue of shares worth up to ₹150 crore and an Offer For Sale (OFS) of about ₹1,105.57 crore, involving approximately 2.73 crore shares.
While the fresh issue will bring money into Rentomojo, the OFS component will see existing shareholders monetise part of their holdings.
Selling shareholders include Accel India, Edelweiss Discovery Fund, IDG Ventures India, ValueQuest, Madison India, Chiratae, GMO entities, promoter Geetansh Bamania and other investors.
Consequently, the overwhelming majority of the IPO proceeds will go to existing shareholders rather than the company.
Rentomojo plans to utilise ₹70 crore of the fresh issue proceeds towards repayment of certain borrowings. Another ₹42.5 crore has been earmarked for lease rentals or licence fees for warehouses and experience stores, with the balance proposed for general corporate purposes.
50% QIB, 35% retail: ₹14,948 opens the door
The IPO has reserved 50% of the net offer for Qualified Institutional Buyers, 15% for Non-Institutional Investors and 35% for Retail Individual Investors.
Employees have also been offered a separate reservation of shares worth up to ₹2 crore, along with a ₹20-per-share discount on the final offer price.
For retail investors, the minimum application is 37 shares. At the upper price band of ₹404, one lot would require ₹14,948, while the investment at ₹384 works out to ₹14,208.
The basis of allotment is expected to be finalised on September 15, followed by credit of shares and refunds before the proposed listing on September 17 on both the BSE and NSE.
Profit growth gives Rentomojo’s IPO its strongest pitch
The numbers provide perhaps the most compelling part of the Rentomojo story.
For FY26 ended March 2026, the company reported revenue of ₹387 crore, up 45.5% from ₹266 crore in FY25.
But the bigger headline came from the bottom line.
Profit after tax more than doubled to ₹104.2 crore from ₹43.1 crore, representing a dramatic 142% year-on-year increase.
The sharp PAT expansion suggests that Rentomojo is moving beyond the traditional growth-at-any-cost narrative associated with consumer internet businesses and towards a model where scale can translate into meaningful profitability.
The company’s EBITDA performance and operating margins will consequently be closely watched by public-market investors as they assess whether the recent earnings momentum can be sustained.
253,825 subscribers — and 29-city footprint
As of March 31, 2026, Rentomojo had 253,825 live subscribers across 29 Indian cities, underlining the reach of its subscription-led business model.
The company operates a technology-driven, direct-to-consumer platform offering furniture, appliances and other household products on rental and subscription plans.
As of March 2026, its operating infrastructure comprised 20 warehouses and 82 experience stores, all functioning from leased premises.
This asset-light approach allows Rentomojo to build a distributed rental network without owning the underlying real estate, although it also leaves the company exposed to recurring lease and logistics costs.
A 42–47% market share puts Rentomojo in the lead
Rentomojo’s market positioning could be one of its strongest IPO talking points.
A Redseer report cited in the company’s offer documents estimates that Rentomojo accounted for 42–47% of the organised online furniture and appliance rental market, based on subscription revenue, in FY25.
The company does not have a direct listed peer in India, making its IPO an unusual public-market opportunity to participate in the organised rental and subscription economy.
Its addressable market extends beyond furniture into appliances and other household products, allowing consumers to avoid the upfront cost and long-term commitment associated with outright purchases.
Debt remains an investor watchpoint
The growth story, however, comes with a balance-sheet question.
Rentomojo reported total borrowings of ₹258.3 crore as of June 2026. The decision to use ₹70 crore of the fresh IPO proceeds for debt repayment indicates that strengthening the balance sheet is one of the immediate priorities following the issue.
The company’s ability to maintain strong cash generation while expanding its subscriber base, warehouse network and experience stores will therefore be critical to sustaining profitability.
For investors, the central question is whether Rentomojo can continue to grow rapidly without allowing rental, logistics, refurbishment, depreciation and financing costs to erode its margins.
The subscription economy gets its Dalal Street moment
Rentomojo’s IPO is ultimately a bet on a behavioural shift: from ownership to access.
For a generation that increasingly values flexibility, mobility and lower upfront expenditure, renting furniture and appliances can make economic sense — particularly for young professionals, migrants, students, newly married couples and consumers living in India’s expanding urban centres.
Rentomojo is attempting to turn that behavioural shift into a repeatable subscription business.
The IPO will test whether public-market investors are willing to place a premium on that transition.
With revenue rising 45.5%, PAT surging 142%, more than 2.53 lakh live subscribers and an estimated 42–47% share of the organised online rental market, Rentomojo enters the IPO arena with a considerably more mature financial profile than a conventional early-stage consumer-tech story.
But with most of the issue being an OFS and the company receiving only ₹150 crore of fresh capital, investors will also scrutinise valuation, debt, cash flows and the sustainability of its recent earnings surge.
Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services are the book-running lead managers, while KFin Technologies is the registrar to the issue.
