Rentomojo, a leading furnishing rental brand specializing in furniture, appliances, and fitness equipment on a monthly rental basis, has successfully secured a significant investment of Rs 210 crore (approximately $25 million) in its ongoing Series D and D1 round. The funding round is spearheaded by Edelweiss Discovery Fund Series – I, with notable participation from existing investor Chiratae Growth Fund and Magnetic, founded by Rajeev Chitrabhanu.
This latest injection of capital serves as a pivotal moment for Rentomojo, propelling the company to maintain its leadership position in the creation of the appliances and furniture rental category in India. Geetansh Bamania, Founder and CEO of Rentomojo, expressed excitement about the partnership with the investors, highlighting the company’s commitment to providing a smart home-furnishing alternative for working professionals seeking flexibility in their housing options.
Rentomojo, headquartered in Bengaluru, has made significant strides since its inception in 2014, operating in 16 cities and serving close to 450,000 customers. The company has strategically established offline experience centers across major pin codes in Bengaluru, showcasing its dedication to both online and offline customer experiences.
The funding round comes at a time when Rentomojo has demonstrated sustained profitability for the last 10 quarters. According to startup data intelligence platform TheKredible, Rentomojo reported a revenue of Rs 121 crore in FY23, marking a notable increase from Rs 98.6 crore in FY22. The firm achieved a significant milestone by turning profitable, reporting a profit of Rs 6.19 crore compared to a loss of Rs 13.5 crore in the previous fiscal year.
Geetansh Bamania attributes Rentomojo’s success to a combination of factors, including a robust team, rigorous cost management, sound governance practices, a tech-first approach, and an unwavering focus on enhancing the customer experience. The company’s commitment to sustainable growth is evident in its financial performance and expansion to 16 cities.
Ashish Agarwal, Managing Partner of Edelweiss Discovery Fund, the lead investor in the Series D round, expressed enthusiasm about partnering with Rentomojo. “We are excited to partner with Geetansh and the Rentomojo team. The company offers a smart home-furnishing alternative to working professionals who value the freedom of flexibility in their housing options,” said Agarwal. He emphasized the tremendous growth potential in the category and highlighted Rentomojo’s well-positioned leadership team.
Venkatesh Peddi, Managing Director and Partner at Chiratae Ventures, also expressed confidence in Rentomojo’s journey. “We are strong believers in Geetansh and the Rentomojo team and are very impressed with how they built the company over the last couple of years. We remain committed to the journey of Rentomojo and look forward to its continued success,” added Peddi.