IPO Summary
| Rentomojo IPO Details | |
|---|---|
| IPO Date | 9th Sep to 13th Sep, 2026 |
| Sale Type | Fresh Issue + OFS |
| Tentative Listing Date | 17th Sep, 2026 |
| Price Band | ₹384 to 404 |
| Post Issue M. Cap at ₹404 | ₹4,246 Cr |
| Total Issue Size | ₹1,106 Cr |
Industry Overview
India’s home furniture and appliances market is large but still runs mostly on outright ownership.
Within this market, a distinct organised rental and subscription segment has begun to take share.
That segment, which covers furniture and large appliances rented on a monthly plan, was worth ₹69,520 Cr in CY2025 and is expected to grow at about 11% CAGR to ₹1,17,210 Cr by CY2030.
It is within this organised rental segment that Rentomojo operates.
Business Model Explained
Rentomojo runs a technology-driven D2C online rental and subscription platform for home furniture and appliances. It holds a 42-47% share of the organised furniture and appliances rental market by subscription revenue in FY25.
As of 31 March 2026, it had 253,825 live subscribers across 29 cities.
Subscribers order through the Rentomojo app or website, or visit one of 82 experience stores, and pay a monthly subscription fee instead of buying outright.
The product portfolio spans beds, mattresses, sofas, wardrobes, washing machines, refrigerators, televisions and water purifiers, sourced from brands including Haier, Wakefit, Livpure and Duroflex, alongside a growing private-label range.
In FY25, the company began manufacturing private-label refrigerators and washing machines with Dixon Technologies (India) Limited, India’s largest electronics manufacturing services player by revenue, and launched its own branded water purifier priced at about ₹391 a month, among the cheapest in the category.
Unit Economics
- Revenue per subscriber grew steadily, up about 18% cumulatively over two years, but PAT per subscriber more than doubled between FY25 and FY26 largely because of a one-time deferred tax credit of ₹1,444 per subscriber (₹37 Cr in total), not because operations became more efficient.
Operating Metrics
- Subscriber Base: The subscriber base grew 70% over two years, and in FY26, for the first time, more than half of all orders came from repeat subscribers rather than new sign-ups.
- Revenue Visiblity: Unrecognised Contracted Revenue, which is revenue already committed under active subscriptions but not yet recognised, more than quadrupled to ₹293 Cr, giving the company revenue visibility into FY27 regardless of new subscriber additions.
- Network: Experience stores with paid leases nearly doubled in FY26 alone, from 44 to 83, showing the company leaning harder into physical discovery alongside its online channel.
The Financial Stuff: From Revenue to PAT
- Revenue from operations grew at a CAGR of 42% between FY24 and FY26, and EBITDA grew faster at 45%, pointing to genuine operating leverage as fixed costs spread across a larger revenue base.
- One anomaly being PAT growth of 116% CAGR overstates the underlying trend, since FY26 includes a ₹37 Cr deferred tax credit that will not repeat.
Rentmojo’s Peers
- House of Kieraya grew revenue faster than Rentomojo, but Rentomojo had a higher PAT margin of 27% against 16%.
Key Risks
- Revenue concentration: Furniture and appliance rentals made up 98% of revenue from operations in FY26. Any decline in demand for renting these products would directly hurt revenue.
- Payment defaults and receivables: Trade receivables classified as credit impaired (more than 180 days overdue) rose from ₹13 Cr in FY24 to ₹22 Cr in FY26. Delays or defaults in subscriber payments, or premature cancellation of contracts, could adversely affect cash flows.
Conclusion
Future profitability will depend on the company sustaining capital efficiency as it keeps investing in new cities, and on whether receivables and collections stay under control as the subscriber base scales further.
