Rentomojo Ltd

Rentomojo Limited

Incorporated in April 2012 as Edunetwork Private Limited and headquartered in Bengaluru, Rentomojo Limited runs a direct-to-consumer online rental and subscription platform for home furniture and appliances. Subscribers pay a fixed monthly rent instead of buying, and the company owns the asset and handles delivery, installation, repairs, relocation, pickup, refurbishment and redeployment. Furniture rentals were 50.59% of FY26 revenue and appliance rentals 47.15%, with 97.90% of revenue recurring and the top 10 cities contributing 89.51%. As of 31 March 2026 it had 253,825 live subscribers and 851,184 live items across 29 cities, served through 20 warehouses covering 538,933 sq ft and 82 experience stores in 17 cities. Products come from 252 suppliers including Haier, Wakefit, Livpure, Godrej and Duroflex, alongside private-label appliances made by Dixon Technologies. Redseer puts the company at 42% to 47% of the organised home furniture and appliances rental market by subscription revenue in FY25. Geetansh Bamania has run the company since incorporation.

Auditor: Deloitte Haskins & Sells LLP         BRLM: Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services

Registrar: KFin Technologies Limited         DRHP: 27 March 2026         RHP: 3 September 2026

Financials

Executive Summary:

Decent Listing Gains | Track

● A share price of INR 404 implies a market capitalisation of INR 4,206 cr and an enterprise value of INR 4,251 cr, which is 26.0x FY26 reported EBITDA of INR 163.46 cr but 48.1x FY26 EBIT of INR 88.47 cr. EBIT is the measure that matters, since the company owns every asset it rents and the INR 49.02 cr of fleet depreciation is the cost of running the business rather than a charge to be added back. Reported PAT of INR 104.30 cr also carries a INR 36.64 cr deferred tax credit taken for the first time this year, without which the multiple moves from 38.8x to 59.8x on pre-tax earnings. We find the pricing full. Given the strength of the board, the institutional backing the company has had since inception, and the founder's record of scaling the business, we would track it and wait for the valuation to improve before evaluating further.

● The top 10 cities were 89.51% of FY26 revenue, leaving most of urban India untouched and giving a large opportunity to scale. Indore and Lucknow grew 6.91 times and 6.98 times in FY26 off a small base. Rentomojo holds 42% to 47% of the organised market by subscription revenue and more than half of all live subscribers, with House of Kieraya (Furlenco) the only other operator of scale, so the category is a two-player market today.

● The model comes down to buying the asset, renting it out, and forecasting demand well enough to place it, and none of those is difficult to replicate. What has protected the position so far is capital, which let Rentomojo scale quickly and build a brand at the same time, rather than any technology edge, so a better-funded entrant that decides the economics are worth chasing can build the same thing. Contracts are monthly and subscribers can terminate at any time, which limits how much of the base is genuinely locked in.

● Ajay Nain, an erstwhile director, filed his NCLT petition on 25 March 2026, two days before the DRHP went in on 27 March 2026, and his complaint to the book running lead managers is dated 27 March 2026, the same day as the DRHP itself. He complained to SEBI on 2 April 2026 and registered the FIR on 2 July 2026, having sold his entire holding of 2,223 shares, then 9.41% of the company, under a share purchase agreement dated 22 August 2023. Among the reliefs sought is a direction that the company not file the DRHP or any offer document and be restrained from taking any step towards the IPO. Claims brought two and a half years after the sale and timed to the week of the filing read to us as an effort to hold up the issue rather than a fresh grievance. The Karnataka High Court stayed all investigation in the FIR on 17 July 2026 and both matters are pending.

● Free cash flow improved from negative INR 57.28 cr in FY24 to negative INR 4.32 cr in FY26 and the operating metrics below are moving the right way, but occupancy (equipment deployed as compared to total equipment on book) at 83.34% is still under the 86.43% of FY24, so the asset base is filling more slowly than it is growing. The business is improving. Our hesitation is with the price being asked for it.

● The useful life of office equipment given on rent moved from 3 to 5 years out to 3 to 10 years in FY24, and furniture and fittings from 8 years to 10 years in FY25, revising the depreciation assumptions twice in the three years before the IPO. Depreciation was lower by INR 9.13 cr in FY24 and INR 6.23 cr in FY25 against PAT of INR 22.41 cr and INR 43.11 cr, so 41% and 14% of profit. The RHP states in its risk factors that any extension in the estimated useful life of rental assets may reduce depreciation expense and increase reported profitability.

● Big 4 auditor and high quality independent board of directors (details in Promoter and Leadership section below) gives comfort on good governance standards maintained by the company.

● Items bought in FY17 had earned 5.12 times their original cost by FY26 with 56.12% of that cohort still on rent, and the FY2018 cohort has earned 4.49 times with 60.92% still earning, which the RHP cites as indicating a useful life of approximately 10 years on management estimate. Revenue rose from INR 192.70 cr in FY24 to INR 386.99 cr in FY26, a CAGR of 41.7%, with 45.51% growth in FY26 alone, and subscription revenue recognised over the contract period is 97.90% of that. Unrecognised contracted revenue, already contracted but not yet earned, went from INR 68.29 cr to INR 292.57 cr over the same two years.

● Live subscribers grew from 149,498 to 253,825 over two years, items per user from 2.61 to 2.83, average revenue per item from INR 5,612 to INR 6,253 and the repeat rate from 47.31% to 50.41%, so all three levers behind revenue growth moved together. Selling a second or third item to an existing subscriber costs nothing in acquisition spend. Average delivery turnaround fell from 3.77 days in FY24 to 2.35 days in FY26 while total touchpoints, covering deliveries, pickups, replacements, doorstep repairs and relocations, rose 90.7% from 918,936 to 1,752,609.

● The company has entered a new segment of water purifiers. According to the RHP, annual maintenance and repair cost of ownership of purifiers sits at approximately INR 3,000 to INR 3,500, approximately 40% of product value, against rental plans starting at approximately INR 4,500 a year, and Rentomojo prices its own-brand purifier from INR 391 a month with filters included. Redseer records South Korean purifier penetration at 85% to 90%, with 70% to 75% of those households on subscription.

● Cumulative operating cash flow over FY24 to FY26 was INR 379.99 cr against cumulative EBITDA of INR 360.05 cr, a conversion of 105.5%, so reported profit is backed by cash. Cumulative capex over the same period was INR 466.21 cr, running at 122.7% of operating cash flow and leaving free cash flow at negative INR 86.22 cr. The company carries its rental assets on its own books, so every addition to the subscriber base needs an outlay before any rent is earned.

● Reported PAT of INR 104.30 cr for FY26 includes a deferred tax credit of INR 36.64 cr taken for the first time this year against accumulated losses, against profit before tax of INR 67.66 cr and no current income tax paid in any of the three years. Return on net worth of 43.51% falls to 28.22% on profit before tax against the same average net worth. The credit could have been recognised in any year management judged future taxable profit probable, and it was taken in the last audited year before the offer, lifting reported profit by 54.2%.

● On 2 July 2026 Ajay Nain, an erstwhile director and ex cofounder of the company, filed a complaint registered as an FIR by the Inspector, Special Enquiry Wing CCB, Bengaluru, naming Geetansh Bamania (Promoter, MD and CEO), Hakim Fakhruddin Ujjainwala (CFO), Gaurav Bamania (brother of the promoter) and Beacon Trusteeship Limited as trustee of RM Employee Benefit Trust, among others. The RHP records allegations that the accused pressured and coerced him into transferring 2,616 equity shares by gift deed without consideration, and concealed material financial information to induce him to sell a further 2,223 shares to the trust, with a claimed loss of INR 37.25 cr.

● Security deposits outstanding fell from INR 47.73 cr to INR 45.98 cr even as live subscribers rose 30.7%, taking deposit cover per subscriber from INR 2,457 to INR 1,812, down 26.2% in a year. Credit-impaired receivables, meaning dues over 180 days, rose to INR 21.89 cr and are now 47.6% of all deposits held.

● Asset insurance covered 53.92% of the book value of property, plant and equipment in FY26, and the RHP states assets at subscriber premises carry no cover at all, which at 83.34% occupancy leaves most of a INR 426.17 cr asset base uninsured. There is no in-transit cover on any movement of goods, and general liability insurance does not extend to employees or contractors. The June 2026 warehouse fire caused a loss of INR 11.02 cr, 10.6% of FY26 PAT, with the insurance outcome unknown. Assets at customer locations are also excluded from annual physical verification, and records for unique asset identification numbers on own-use assets of INR 16.09 cr gross value, and for location on a further INR 4.69 cr, are still being updated.

● Accel (20.92% pre-offer fully diluted), Chiratae, IDG, Madison India, Edelweiss Discovery and ValueQuest have backed the company since 2015, CRISIL rates the long-term facilities BBB+/Stable and the latest debt drawn as of 30 June 2026 was at 9.00%. At the cap price the offer for sale is INR 1,105.6 cr against a fresh issue of INR 150 cr, with eighteen shareholders selling including the promoter. IDG Ventures, GMO Payment Gateway, GMO GFF, MSIVC 2018V, Renaud Laplanche and VCATs exit in full, while Accel sells 37% of its holding, Edelweiss 27%, ValueQuest 30% and Madison 36%. Of the fresh issue, INR 70 cr repays debt, INR 42.50 cr goes towards ordinary rent on warehouses and stores and the balance is general corporate purposes, so a company generating INR 172.87 cr of operating cash flow is funding three years of recurring operating expenditure from primary proceeds, with no capital expenditure object at all.

KPI Scorecard: What Improved and What Did Not

Business

● The company buys furniture and appliances outright, rents them on a monthly subscription, and redeploys each item across successive subscribers, so it owns everything it rents out. Revenue is recognised across the contract period, which is why 97.90% of FY26 revenue is recurring. A refundable security deposit is collected at the start, and invoices go out in arrears on the last day of each month with credit until the 10th of the following month.

● Furniture rentals were INR 195.79 cr in FY26 (50.59% of revenue), appliance rentals INR 182.45 cr (47.15%), other rentals covering legacy electronics and bikes INR 0.64 cr (0.16%), and one-time charges INR 8.12 cr (2.10%). The one-time bucket covers delivery, installation, quality check charges, next-day delivery and Mojo Mover. Within revenue from contracts, rental revenue was INR 360.83 cr, delivery and installation INR 7.95 cr, and quality, inspection and other charges INR 18.21 cr.

● Furniture covers beds, mattresses, sofas, dining sets, wardrobes, study tables, chairs, bookshelves and baby products. Appliances cover refrigerators, washing machines, air conditioners, televisions, microwaves, dishwashers, air purifiers and water purifiers. Nothing is designed or manufactured in-house. Products come from 252 suppliers across 29 cities, including Haier, Wakefit, Livpure, Godrej and Duroflex, plus private-label refrigerators, washing machines and televisions manufactured by Dixon Technologies under agreements dated February, June and October 2025, and own-brand water purifiers from Sarjan Watertech and Genpure Zheng Filters.

● Refurbishment cost, disclosed as repairs and maintenance on plant and machinery, was INR 19.03 cr in FY26 against INR 14.90 cr in FY25 and INR 8.57 cr in FY24.

● As of 31 March 2026 the company had 851,184 live items, 20 warehouses covering 538,933 sq ft, 82 experience stores across 17 cities and 187 logistics partners. Its refurbishment workforce of in-house and contractual technicians, carpenters, painters and unskilled workers was over 1,688 personnel as of 30 September 2025.

● The RHP names AVA Lifestyle Products & Services, CityFurnish India, House of Kieraya, Livpure Smart Homes and Waterwala Labs as competitors. None of them is listed.

Promoters and Leadership

● Geetansh Bamania, 38, is the sole Promoter and is Chairperson, Managing Director and Chief Executive Officer. He holds a master's degree in mechanical engineering from IIT Madras, has been with the company since it was incorporated in April 2012, and has over 14 years of work experience. He was earlier an analyst in advisory at KPMG, a management trainee at Flipkart and a manager at TrendSutra Client Services. His remuneration rose from INR 1.42 cr in FY25 to INR 3.41 cr in FY26.

● The board has six directors, of whom two are executive, one is an Accel nominee and three are independent. All three independent directors were appointed on 2 January 2026. They are Dr. Niddodi Subrao Rajan, formerly CHRO at Tata Sons and global leader for the people and organisation practice at EY; Deepali Nair, currently global head of brand and corporate communications at Biocon Biologics and earlier at HSBC AMC, L&T General Insurance and IIFL Wealth; and Dr. Sandesh Madhukar Kirkire, formerly CEO of Kotak Mahindra Asset Management.

● Hakim Fakhruddin Ujjainwala is a chartered accountant with 15 years of experience, earlier at Pioneer Investcorp and MGB Advisors. He joined the company in February 2022 and was Head of Finance, Capital and Legal from June 2024. He was appointed Chief Financial Officer on 2 March 2026, four weeks before the FY26 year end, and is one of the accused named in the FIR filed by ex cofounder Ajay Nalin.

Valuation

Financials