Rentomojo gets Sebi nod for IPO; Accel, Chiratae among investors selling stakes

Furniture and home electronics rental startup Rentomojo has received approval from the Securities and Exchange Board of India for its proposed initial public offering.

According to the draft prospectus in late March, the IPO would comprise a fresh issue of shares worth Rs 150 crore and an offer by existing shareholders to sell up to 28.4 million shares. Accel, Chiratae Ventures, IDG Ventures India, Edelweiss Financial Services, ValueQuest, Madison India Capital and Japan’s GMO Internet Group are among the selling shareholders.

The total issue size is expected to be Rs 1,100-1,200 crore, people in the know had earlier told ET.


Accel is set to be the largest seller in the IPO, offering up to 7.8 million shares. With a stake of around 21%, the venture capital firm is also the largest shareholder of the company. Chiratae, which has invested via two vehicles, is cumulatively looking to offer up to 2.9 million shares, while Edelweiss plans to sell up to 3.2 million shares. ValueQuest and Madison India Capital are aiming to sell up to 2.7 million and 2.4 million shares, respectively.

Accel is set to reap the biggest gain, having acquired its shares at a weighted average cost of Rs 46.79 apiece. Chiratae invested at weighted average prices of Rs 75.76 and Rs 79.95 per share across its two funds, while Madison, Edelweiss and GMO Global Fintech Fund entered at Rs 55.99, Rs 74.91 and Rs 96.18 per share, respectively.

Accel's lower acquisition cost translates into a per-share gain that is about twice that of GMO Global Fintech Fund, and exceeds the returns of other shareholders.

Promoter Geetansh Bamania, who holds a 14.7% stake, is looking to sell up to 2 million shares.

Rentomojo has raised about Rs 400 crore from private investors to date. Its most recent funding was in February 2024, when it secured Rs 210 crore in a round led by Edelweiss at a valuation of Rs 850-900 crore.

The company plans to use the proceeds from the issue of fresh shares for repayment of debt, payment of lease rentals or license fees for warehouses and experience stores, and general corporate purposes.

Rentomojo, which won the Comeback Kid prize at the ET Startup Awards 2024, saw significant operational disruption during the Covid-19 pandemic, a period that forced a reset of its business model. It has since emerged as a profitable player in the segment. In FY25, the company reported a 38% rise in revenue to Rs 266 crore. Net profit rose to Rs 43 crore from Rs 22.4 crore the year before.

Founded in 2014, Rentomojo operates in a category that saw a proliferation of startups in its early years. Consolidation followed, with several players shutting down or being acquired. In July 2023, rival Furlenco was acquired by Sheela Foam, which owns the Sleepwell brand. Furlenco is also preparing for a public listing.

Merchant bankers Motilal Oswal Financial Services, Axis Capital and IIFL Capital Services are managing the IPO.