RentoMojo Files for IPO, Set to Debut on September 9
Furniture rental startup RentoMojo has filed its red herring prospectus for an IPO opening September 9, comprising a fresh issue of ₹150 Cr and an OFS.
RentoMojo is preparing for its stock market debut, having filed a red herring prospectus with SEBI. The furniture and appliance rental startup's initial public offering will open on September 9 and close on September 11, according to a report by Inc42.
The IPO comprises a fresh issue worth ₹150 crore and an offer for sale of up to 2.7 crore shares. Early backers and cofounder Geetansh Bamania will trim their stakes through the OFS. The company plans to use the fresh proceeds to fund offline expansion, build new warehouses, repay debt, and meet general corporate needs.
Financial Performance
RentoMojo's financial results for the fiscal year 2026 show significant growth. The company's restated profit after tax surged nearly 142% year-over-year to ₹104.2 crore. This figure was aided by a one-time tax credit of ₹36.6 crore. Operating revenue climbed 45.5% YoY to ₹387 crore, while total expenses rose to ₹323.8 crore.
| Metric | FY26 Performance | YoY Change |
|---|---|---|
| Profit After Tax | ₹104.2 Cr | +142% |
| Operating Revenue | ₹387 Cr | +45.5% |
| Total Expenses | ₹323.8 Cr |
Growth Strategy and Market Position
The startup enters the public market with operating momentum across 22 major urban markets. Its business model relies on predictable subscription-based cash flows, supported by a growing network of retail stores and fulfilment hubs. The IPO proceeds are earmarked to further scale offline expansion, which the company believes will lower capital costs and improve long-term operating use.
Challenges and Legal Hurdles
Despite the strong headline figures, RentoMojo faces structural pressures. The FY26 bottom-line growth was heavily influenced by the one-time tax credit, which masked a lower operating margin. The report also notes that rising competition could pressure margins and increase customer acquisition costs.
A significant legal overhang exists. Former cofounder Ajay Nain has filed a lawsuit seeking to halt the IPO over disputed equity transfers. This introduces uncertainty as the company moves toward its subscription dates.
The publication's report also covered brief updates on other startups. Furniture rental rival Furlenco saw its net profit zoom 20 times year-over-year to ₹59.5 crore in FY26, with operating revenue surging 61.9% to ₹370.4 crore. Fintech firm slice is reportedly set to raise around $100 million in a down round at a valuation between $450 million and $465 million, a sharp decline from its previous $1.2 billion valuation. Electric scooter maker Simple Energy launched its Wave range at an introductory price of ₹1.10 lakh, targeting the mass market.
