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Furniture and appliance rental company RentoMojo has set a price band of ₹384-₹404 per share for its upcoming IPO. At the upper end of the price band, the public issue will be worth ₹1,255.6 Cr. This comprises a fresh issue of shares worth ₹150 Cr and an OFS of up to 2.7 Cr shares worth ₹1,105.6 Cr. At the upper end of the price band, RentoMojo is seeking a post-offer market capitalisation of around ₹4,206.3 Cr (about $445.1 Mn). The IPO will open for bidding on Wednesday (September 9) and close on September 11 (Friday). Anchor investors will be able to place their bids on Tuesday (September 8). Investors can bid for a minimum of 37 shares and in multiples of 37 thereafter. RentoMojo is also offering a discount of ₹20 per share to eligible employees bidding under the employee reservation portion. The company trimmed the OFS component marginally from the 2.8 Cr shares proposed in its DRHP. Investors including Accel, Chiratae Ventures, Edelweiss Mutual Fund, and GMO Venture plan to sell shares through the OFS. Cofounder Geetansh Bamania will also offload up to 8.5 Lakh shares as part of the issue. Bamania told Inc42 he initially planned to sell nearly 20 Lakh shares in the IPO. “Initially, I was planning to sell close to 20 Lakh shares. But I thought that I'm more bullish on the company and its future prospects, so I decided to reduce my OFS,” he said. Accel India is the second largest shareholder with a 12.71% stake post-issue, after Bamania, who holds a 13.37% stake. Of the fresh proceeds, around ₹70 Cr will be used to repay or prepay certain borrowings, while ₹42.5 Cr will be deployed towards rental or licence payments for its offline stores and warehouses. The remaining capital will be used for general corporate purposes. Founded in 2014 by Bamania and Ajay Nain, RentoMojo operates a subscription-based platform for renting furniture, appliances, and other home essentials. It claims to operate 20 warehouses and 82 offline stores across 29 cities. At the end of March 2026, it had 8.5 Lakh live items across furniture and appliances and catered to 2.5 Lakh live subscribers. Bamania said 45-50% of RentoMojo’s customers come back to rent again, a figure he sees as a sign of customer satisfaction and product quality. About 5% of the company’s revenue goes towards repairing and maintaining its products, with appliances making up a sizeable share of that spending. When it comes to using its inventory, RentoMojo sees 83-84% occupancy as the sweet spot, the CEO, chairperson, and MD said. Anything above 90% could suggest customers are struggling to find products in stock, while a much lower rate could indicate the company is holding more inventory than it needs, as per him. RentoMojo’s Profit Surges On the financial front, RentoMojo’s profit after tax jumped nearly 142% to ₹104.3 Cr in FY26 from ₹43.1 Cr in the previous fiscal, aided by a tax credit of ₹36.6 Cr. Operating revenue rose 45.5% to ₹387 Cr during the year under review from ₹266 Cr in FY25. The company’s profit before tax stood at around ₹67.7 Cr in FY26. EBITDA rose 38% to ₹163.5 Cr from ₹118.4 Cr in FY25, while EBITDA margin declined to 41.5% from 43.6% in FY25. Bamania said that the decline in EBITDA margin was largely due to the front-ended nature of RentoMojo’s business. “Whenever we grow rapidly, there can be some pressure on the EBITDA margin. This is a front-ended cash flow business, as delivery, repair, and maintenance costs are incurred upfront when we provide an asset to a customer,” he said. He added that the company’s EBITDA margin has remained broadly stable at around 41-42% over the past three years. Meanwhile, RentoMojo generated around ₹170 Cr in cash flow from operations in FY26, while its incremental capex stood at about ₹175 Cr as it purchased furniture and appliances to support its 45% growth. According to Bamania, the company’s internal accruals are currently sufficient to fund its growth, allowing it to keep the fresh issue relatively small. RentoMojo competes with the likes of Furlenco, Cityfurnish, Guarented, and Rentickle. However, Bamania said the company’s competitive set extends beyond rental platforms to outright purchases, credit-led purchases, the second-hand market, and furnished apartments. Bamania claimed that RentoMojo is the market leader with a 55% share. Editors’s Note | September 4, 2026, 16:30 IST The story has been edited to add RentoMojo CEO, chairperson, and MD Geetansh Bamania’s comments.
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