IPO-bound Rentomojo pins growth on 'hard-to-copy' supply chain moat

As Rentomojo prepares to tap the public markets, founder Geetansh Bamania says the company's moat lies in a business model that combines multiple operationally intensive segments of the company into a single platform.

"This is a difficult business to replicate," Bamania told ET, adding that Rentomojo is really a stitching-together of four or five distinct business components, including subscriptions, capex-heavy asset ownership, logistics and warehousing, collections and recovery, and refurbishment — each with its own operational complexity.



A typical subscription business, he said, has around three customer touchpoints; Rentomojo has eleven, spanning delivery, installation, collection, recovery, repair, relocation, and refunds.

The company has around 2.5 lakh active subscribers, giving it roughly 55% market share by subscriber base. Bamania said more subscribers mean more word-of-mouth and brand recall, which shows up in its 45-50% repeat business and 60-70% organic traffic, among the highest in the category.

But scaling a subscriber base this large isn't just a marketing or sales problem, it's a balance-sheet one.

Every new subscriber requires the company to buy an asset upfront, and for years that capital was the real constraint on growth, not demand.

Bamania said lenders were wary of extending credit to a business that wasn't profitable, with a cash runway that fluctuated too much for comfort. It was only after Rentomojo turned profitable around Covid that banks began opening up credit lines at scale.

Rentomojo, however, isn't the only player in the organised rental market. Its competitors include Furlenco, founded in 2012, Cityfurnish, which launched in 2015, and GuaRented, another online rental platform established the same year.

Furlenco turned profitable only in FY25 and reported a sharp increase in both revenue and profit in FY26.

On whether the popularity of EMI-based purchases could pose a competitive challenge for Rentomojo, Bamania said that financing and renting address different consumer needs.

"We're not just an emerging credit economy, we're also a highly mobile economy," he said. As more consumers move towards nuclear families and rented accommodation, they are looking for solutions that eliminate the burden of ownership — from repairs and maintenance, to relocation and disposal.

Rentomojo's net profit surged nearly 142% to Rs 104.3 crore in FY26 from Rs 43 crore a year earlier, aided by a one-time deferred tax credit of Rs 36.6 crore. Operating revenues rose 45.5% to Rs 387 crore, driven by subscriber additions, while total income stood at Rs 394 crore. Founded in 2014 by Bamania and Ajay Nain, the company has raised $45 million from investors including Accel, Chiratae Ventures, and Bain Capital.

The company’s Rs 1,255.57 crore initial public offering (IPO) will be open for subscription from September 9 to 11 in the price band of Rs 384-404 per share. Ahead of the issue, anchor investors will bid on September 8, with the company expected to list on the BSE and NSE on September 17.