According to CEO Geetansh Bamania, the company has set itself apart in an industry where many struggle with sustainable unit economics
The CEO added that during the pandemic, the company was staring at 15 to 20-day cash runway
RentoMojo is estimated to have closed FY24 with INR 200 Cr in revenue and a profit after tax of INR 22 Cr
Online furniture rental startup RentoMojo
is reportedly gearing up to file for an IPO within the next 18 months, according to its founder and CEO Geetansh Bamania.
As per an ET report, RentoMojo became profitable in FY23, setting itself apart in an industry where many competitors have struggled with sustainable unit economics.
“When Covid started in March 2020, we were anticipating turning profitable by October that year. But because of this, it got pushed. And instead of profitability, we were staring at a 15-20-day cash runway by December. At this point we underwent layoffs, before which we managed by cutting salaries for senior management and the mid layer,” he told ET.
It is pertinent to note that in early 2020, as profitability was within sight, the pandemic exposed several challenges for RentoMojo, requiring the company to course-correct before eventually achieving profitability. This period, Bamania said, instilled a mindset of sustainable growth for the business.
Inc42 has reached out to the company. The story will be updated based on their responses.
“Prior to Covid, the way the ecosystem was, every time (we were crunched) we were trying to chase the next round of capital This time when we were against the wall, we knew we had to solve the problem ourselves without depending on any external capital. That was a pivotal moment for us when we started going after all costs and overheads to cut down on excessiveness but still be able to service and grow,” he added.
Founded in 2014 by Bamania, Achal Mittal, Ajay Nain and Gautam Adukia, RentoMojo leases out consumer appliances, furniture and other furnishing products through its app and website.
The Bengaluru-based startup claims to be operational across 16 cities and has served nearly 4.5 Lakh customers since its inception. It also claims to have been profitable for the last 10 quarters. It competes against the likes of Fabrento, Rentickle, Furlenco and Cityfurnish.
RentoMojo is estimated to have closed FY24 with INR 200 Cr in revenue and a profit after tax of INR 22 Cr, according to Bamania. In FY23, the company reported a net profit of INR 6.2 Cr versus INR 121 Cr in revenues.
The development comes months after Inc42 reported that online furniture rental startup RentoMojo raised an undisclosed amount from ValueQuest Scale Fund in a Series D funding round. The investment included a mix of primary funding and secondary purchases for a minority stake in the company.
In February, RentoMojo secured INR 210 Cr ($25 Mn) in its Series D and D1 rounds led by Edelweiss Discovery Fund Series – I.
By Inc42 Media
Source: Inc42 Media