India’s largest organised furniture-and-appliance rental platform opens its Rs 1,255.6 crore mainboard issue on September 9
A digital-first, full-stack rental platform for furniture, appliances and household products plans to raise Rs 1,255.6 crore via a mainboard listing on BSE and NSE.
Rentomojo Ltd operates a digital-first, full-stack rental platform offering furniture, appliances, fitness equipment and other household products through flexible subscription plans — a play on India’s shift toward flexible, asset-light consumption.
Crucially, it manages the entire product lifecycle: procurement, storage, delivery, installation, maintenance, relocation, refurbishment and reverse logistics — enabling the same asset to be rented to multiple customers over its useful life.
Customers can choose individual products or bundles, and extend, return, relocate or purchase rented items.
The scale is meaningful and leading. As of FY26, Rentomojo had 2,53,825 live subscribers and 8,51,184 live items across 29 cities, supported by 20 warehouses and 82 experience stores, with revenue from operations of Rs 387 crore.
It is the largest player in India’s organised home furniture and appliance rental market (excluding water purifiers), with a 42–47% share of subscription revenue in FY25 and ~50–55% of live subscribers as of March 2025 — genuine market leadership.
The model is integrated and increasingly efficient. Rentomojo combines e-commerce, subscription and re-commerce across 11 subscriber touchpoints, with shared infrastructure and repeated asset refurbishment and redeployment keeping product occupancy above 82% during FY24–FY26 (83.3% in FY26) — the key metric for a rental business, since reused assets drive returns.
Organic traffic contributed 61% of website traffic in FY26 and repeat orders 50% of total orders (up from 47% in FY24), pointing to a self-reinforcing demand engine.
The technology stack is proprietary and central. It integrates asset tracking, demand forecasting, underwriting, logistics, refurbishment and workflow management across the asset lifecycle — processing 17.5 lakh operational touchpoints and supporting 6.18 lakh refurbishments in FY26, while delivery turnaround improved from 3.7 days (FY24) to 2.4 days (FY26).
Data-driven underwriting lifted revenue realisation from 98.1% to 99.0%, and credit-impaired receivables fell to 1.0% of revenue. The company benefits from rising urban mobility, a large unfurnished-rental-housing base and growing preference for flexible consumption.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 9, 2026 |
| Issue Closes | September 11, 2026 |
| Listing | BSE, NSE (Mainboard) |
| Listing Date | September 17, 2026 |
| Price Band | Rs 384 – Rs 404 per share |
| Face Value | Rs 1 |
| Issue Size | Rs 1,255.6 crore (~3,10,78,400 shares) |
| Fresh Issue | Rs 150 crore |
| Offer for Sale | Rs 1,105.6 crore |
| Min. Application | 37 shares (multiples thereafter) |
| Min. Retail Investment | Rs 14,948 |
| Post-Issue Market Cap | Rs 4,206 crore |
| QIB / Retail / NII | 50% / 35% / 15% |
| Lead Managers | Motilal Oswal, Axis Capital, IIFL Capital Services |
| Registrar | KFin Technologies Ltd. |
The issue is dominated by the OFS. From the fresh proceeds (Rs 150 crore), Rentomojo will utilise Rs 70.0 crore for repayment or prepayment of certain borrowings and accrued interest, Rs 42.5 crore for lease rentals/licence fees for warehouses and experience stores, and the rest for general corporate purposes; the OFS accounts for Rs 1,105.6 crore.
So around 88% of the raise goes to selling shareholders (investors like Accel, Chiratae and ValueQuest) rather than into the business — a key caveat. There is a Rs 2.0 crore employee reservation with a Rs 20/share discount.
Post-issue, promoter and promoter group shareholding is low at ~20.1% (from 21.7% pre-issue) — a venture-backed cap table with high public/institutional ownership.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from Operations | 193 | 266 | 387 |
| EBITDA | 75 | 112 | 159 |
| EBITDA Margin (%) | 38.9 | 42.3 | 41.1 |
| PAT | 22 | 43 | 104 |
| PAT Margin (%) | 11.6 | 16.2 | 27.0 |
| Adj. PAT | 22 | 43 | 107 |
| RoE (%) | 16.1 | 23.5 | 36.1 |
| RoCE (%) | 16.7 | 20.6 | 19.8 |
Revenue from operations doubled from Rs 193 crore in FY24 to Rs 387 crore in FY26, while PAT surged nearly 5x, from Rs 22 crore to Rs 104 crore. SBI Securities pegs the FY24–FY26 Revenue/EBITDA/Adjusted-PAT CAGR at 41.7%/45.5%/118.4% — reflecting healthy operating leverage and sharply improving profitability, unusual for a scaling consumer-platform business.
Margins are high and stable — EBITDA margin above 38% across all three years, and PAT margin expanding to 27.0% in FY26 (a notable jump).
Return ratios have improved markedly (RoE from 16.1% to 36.1%). The growing live-subscriber base and unrecognised contracted revenue provide revenue visibility, and the ability to refurbish and redeploy assets across multiple cycles supports asset-level returns.
The main caveat is that the business is capital-intensive — buying and holding rental assets ties up capital — so sustained high returns depend on maintaining occupancy and utilisation.
Peer Comparison
There is no directly comparable listed player — Rentomojo is a unique, market-leading organised rental-subscription platform, so the full ~39.4x P/E and ~14x book multiple lack a clean like-for-like anchor.
GMP Watch
Grey-market interest has been strong — among the season’s healthiest. In tracked data, the Rentomojo IPO GMP ranged around ₹115–149 in the run-up to and on opening, and stood at about ₹115 (~28% premium) on September 9 — implying a listing gain of roughly 28–37% over the Rs 404 upper band (an indicative listing near ₹519–553).
Of course, treat GMP as one data point rather than a forecast.
Price Band Analysis
At the upper band of Rs 404, on FY26 earnings the issue is valued at a post-issue P/E of about 39.4x (pre-issue ~38–40x), for a post-issue market cap of about Rs 4,206 crore, with a P/BV of ~14x and RoNW of ~43.5%. This is a full valuation, though supported by market leadership and rapid profit growth — and with no directly comparable listed peer, it stands largely on its own metrics.
According to a note by SBI Securities, “Rentomojo is India’s largest organised furniture and appliance rental platform, supported by a recurring subscription model, an expanding subscriber base and integrated capabilities across procurement, refurbishment, logistics and asset redeployment…”
“…The company’s Revenue/EBITDA/Adj. PAT grew at a CAGR of 41.7%/45.5%/118.4%, respectively, over FY24–FY26 period, reflecting healthy operating leverage and improving profitability… However, the business remains capital intensive and exposed to subscriber defaults, rental demand, geographic concentration and execution risks…”
“At the upper price band of Rs 404, Rentomojo is valued at a post-issue P/E of 39.4x based on FY26 earnings. Considering its market leadership, strong growth, improving profitability and favourable industry opportunity, we assign a SUBSCRIBE rating to the issue.”
Risks to Consider
The large OFS is the headline caveat. At Rs 1,105.6 crore of a Rs 1,255.6 crore issue (~88%), the vast majority goes to selling shareholders (VC investors monetising) rather than the business — only Rs 150 crore is fresh capital.
Capital intensity is structural. The rental model requires continuous investment in assets, so growth consumes capital, and returns hinge on keeping occupancy/utilisation high and refurbishing assets efficiently across cycles.
Subscriber-default and payment risk. Payment delays, defaults or premature cancellations could reduce asset returns and increase receivable impairment and collection costs, affecting liquidity and profitability.
Geographic concentration is significant. The top 10 cities contributed 89.5% of FY26 revenue, so adverse economic, regulatory or competitive developments in those markets could disproportionately hit performance.
Vendor-supply dependence. Rentomojo relies on third-party vendors without long-term supply arrangements — disruption, quality issues or cost increases could affect availability, subscriber experience, margins and expansion capacity.
Subscriber-growth and execution risk. Growth depends on attracting and retaining subscribers and generating repeat orders; higher churn or acquisition costs, or delays in expanding warehouses, experience stores and new cities, could raise costs and hit profitability. The full valuation with no peer anchor adds to the risk.
On balance, this is a high-quality, fast-growing, market-leading platform at a full valuation with a large OFS. SBI Securities’ ‘Subscribe’ — echoed by BP Equities, Canara Bank Securities and Ventura — and the strong ~28–37% GMP point to a constructive case on both a listing-gain and medium-to-long-term basis for investors comfortable with the capital-intensity, concentration, default and valuation considerations. Growth-oriented investors seeking exposure to India’s organised rental-consumption theme may consider it, tracking QIB demand near the close.