Furniture rental firm Rentomojo announced it has allocated Rs 145 crore in debt and equity. Of the total investment, Rs 130 crore was gathered from a clutch of prominent institutional players. The outstanding Rs 15 crore is equity raised from current VCs such as Accel and Bain Capital.
So far, this Bengaluru based business has raised a sum of ₹600 crores in debt and equity. The organisation stated it became profitable in October and reported an annualised revenue of over ₹100 crores.
Established in 2014 by Geetansh and Ajay Nain, the startup run under Edunetwork Pvt. Ltd., began renting out furniture in the core section, including beds, television, and washing machines. During the pandemic company’s work-from-home (WFH) area grew 25 percent from 9 percent in pre-pandemic levels. Beginning in March, the firm raised Rs 10 crore ($1.3 million as per current exchange rates) in a new tranche of the continuing Series C round of investment from two returning investors.
Rentomojo CEO Geetansh Bamania said that the company has significantly decreased its losses in the past 1.5 years and turned PAT positive.
“Because we do not have any significant losses right now, the only need left is to purchase assets. This is why we chose to raise a larger debt round instead of equity,” he added.
“When Covid hit, a lot of lending companies saw their portfolio going into NPAs. Whereas for Rentomojo, operating on a subscription-model revenue meant that we did not have to acquire customers every month,” he shared.
Rentomojo is also extending its business in Ahmedabad, Mysore, Jaipur, Faridabad, Ghaziabad, Gandhinagar Chandigarh and Kolkata.
Rentomojo currently competes with Kieraya Furnishing Solutions Pvt. Ltd.-run Furlenco. The Bengaluru-headquartered company is also raised a debt round of Rs 1.1 billion, in August 2021, from Trade Cred, a Mumbai-based credit firm.