Rentomojo is backed by Accel. Rentomojo has submitted its Red Herring Prospectus (RHP) to the national regulator, and the process is underway for its public market listing. The online rental firm intends to offer an initial public offering (IPO) to raise approximately ₹1,255.6 crore.

This total issue size consists of a fresh issue of shares of ₹150 crore and an Offer for Sale (OFS) of approximately 2.73 crore equity shares of ₹1,105.6 crore. The company has priced the public issue between ₹384 and ₹404 per unit. Rentomojo seeks a valuation of around ₹4,200 crore at the top end of the defined price band.

IPO timeline and investor divestment

The public sale for Rentomojo’s IPO is set to officially begin on September 9 and close on September 11. Before the general public issue, anchor investors will get an opportunity to make their bids, beginning September 8. 

During the public offering, the Offer for Sale component will permit the sale of equity shares to several early-stage venture capital backers and to corporate institutional investors. The existing investors joining the OFS comprise Accel India, Edelweiss, IDG Ventures India, ValueQuest, Madison India, and GMO. 

The company also plans to sell an equity stake via the dedicated public sale (OFS) segment led by its founder, Geetansh Bamania. Accel India is the largest individual shareholder in the company with a 20.92% equity stake, according to the company’s previously submitted Draft Red Herring Prospectus (DRHP). 

Founder Geetansh Bamania has a 14.69% shareholding, and Chiratae Ventures holds 13.69% of the platform. Other significant institutional investors include Edelweiss Discovery Fund, which has a 10.53% stake, and ValueQuest S.C.A.L.E Fund, with an equity holding of 8.92%.

Fund utilization and financial performance

Rentomojo plans to use its net proceeds from the fresh equity raise of ₹150 crore primarily for strengthening its overall corporate balance sheet and debt servicing. Of the fresh funding raised, around ₹70 crore would be used directly to settle existing company obligations. 

This company expects to use an additional ₹42.5 crore to fund its continued operations, including ongoing lease payments and licensing fees on its network of commercial warehouses and experience centers across India. 

In terms of operations, Rentomojo has developed an extensive retail footprint in cities in India. At the end of March 2026, the company had 2.54 lakh live subscribers in 29 cities across the country. 

The company is supported by a physical network of 20 industrial warehouses and 82 customer experience stores in operational markets.

In addition to its physical expansion, Rentomojo has shown robust financial performance, with its revenue growth continuing to rise steadily while they remain profitable. 

The furniture and consumer appliance rental business registered a year-on-year growth rate of 45.5% in operational revenue and increased to ₹387 crore in FY26 from ₹266 crore in FY25. 

Over the same fiscal year, the company realized a significant increase in its corporate profitability. Profit after tax rose by 142% to ₹104.2 crore in FY26 from tax losses of ₹43.1 crore in the previous fiscal year, as per Rentomojo’s latest quarterly report.

Conclusion

With the filing of the Red Herring Prospectus, Rentomojo has moved a clear step from a startup getting funding from a venture capitalist to a public company that is listed on Indian stock exchanges. Their IPO structure, raising additional capital while allowing investors to exit a portion of their investments, enables the Company to raise capital to pay off existing debt obligations and satisfy anticipated lease requirements for a portfolio of experience stores and fulfillment centers.

With a strong listing graph, rising profit margins, and a subscriber base of 2.54 lakh in 29 cities, Rentomojo has carved a niche for itself in the technology-driven rental market of India ahead of its public listing on September 9.