Rentomojo: Furniture rental startup Rentomojo raises $25 million in funding round led by Edelweiss Discovery
Rentomojo, a furnishing rental startup that provides furniture and appliances among others, has raised Rs 210 crore ($25 million) in a late-stage funding round led by Edelweiss Discovery.
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Existing investors Chiratae Growth Fund, as well as Magnetic, also participated in the round, as per a statement from the firm on Wednesday. The company declined ET’s request for comment on the valuation.
The company has raised the capital – which it said will be used to further build on the appliances and furniture rental category — after over two years of closing its last funding round.
The Bengaluru-headquartered startup was founded by Geetansh Bamania and Ajay Nain in 2014. Nain moved out of the company in 2018. The firm operates in 16 cities and has served close to 450,000 customers so far.
With an online-first approach, the company has offline experience centres in just one city – Bengaluru. It has been running profitably since the last 10 quarters starting October 2021, the statement said.
“The company offers a smart home-furnishing alternative to working professionals who value the freedom of flexibility in their housing options. This category has tremendous potential for growth, and Rentomojo’s leadership team is well-positioned to continue to profitably grow and lead this segment,” said Ashish Agarwal, managing partner of Edelweiss Discovery Fund.
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Bamania, who is also the CEO of the firm, added that the latest round of funding serves as a launchpad for the company to continue building on the appliances and furniture rental category in India.“We’ve developed a comprehensive strategy for business expansion. This entails meticulous strategic planning, right financial investment, and continuous operational excellence to ensure sustainable growth and seize emerging prospects in the rental market,” he told ET in an interaction.
The Accel-backed company reported a profit after tax of Rs 6.2 crore in the financial year ended March 2023, as against a loss of Rs 13 crore a year ago. “The company is now poised for even stronger financial performance in FY24. We are seeing a lot of traction for rental as a solution across the cities that we operate in,” Bamania said.
The furniture rental space has seen only a handful of players that have picked up venture capital dollars. The asset-heavy business sector has also seen its players raise a fair share of debt funding rounds over the years for growth.
Sheela Foam, which owns the Sleepwell brand of mattresses, in July announced that it will acquire a 35% stake in Furlenco for Rs 300 crore – marking the largest and first reported acquisition in the space. Furlenco is a rival brand to Rentomojo in the category. Other funded players, albeit comparatively smaller rivals, include Cityfurnish and Rentickle.
Rentomojo, a furnishing rental startup that provides furniture and appliances among others, has raised Rs 210 crore ($25 million) in a late-stage funding round led by Edelweiss Discovery.
![]()
Existing investors Chiratae Growth Fund, as well as Magnetic, also participated in the round, as per a statement from the firm on Wednesday. The company declined ET’s request for comment on the valuation.
The company has raised the capital – which it said will be used to further build on the appliances and furniture rental category — after over two years of closing its last funding round.
The Bengaluru-headquartered startup was founded by Geetansh Bamania and Ajay Nain in 2014. Nain moved out of the company in 2018. The firm operates in 16 cities and has served close to 450,000 customers so far.
With an online-first approach, the company has offline experience centres in just one city – Bengaluru. It has been running profitably since the last 10 quarters starting October 2021, the statement said.
“The company offers a smart home-furnishing alternative to working professionals who value the freedom of flexibility in their housing options. This category has tremendous potential for growth, and Rentomojo’s leadership team is well-positioned to continue to profitably grow and lead this segment,” said Ashish Agarwal, managing partner of Edelweiss Discovery Fund.
Discover the stories of your interest
Bamania, who is also the CEO of the firm, added that the latest round of funding serves as a launchpad for the company to continue building on the appliances and furniture rental category in India.“We’ve developed a comprehensive strategy for business expansion. This entails meticulous strategic planning, right financial investment, and continuous operational excellence to ensure sustainable growth and seize emerging prospects in the rental market,” he told ET in an interaction.
The Accel-backed company reported a profit after tax of Rs 6.2 crore in the financial year ended March 2023, as against a loss of Rs 13 crore a year ago. “The company is now poised for even stronger financial performance in FY24. We are seeing a lot of traction for rental as a solution across the cities that we operate in,” Bamania said.
The furniture rental space has seen only a handful of players that have picked up venture capital dollars. The asset-heavy business sector has also seen its players raise a fair share of debt funding rounds over the years for growth.
Sheela Foam, which owns the Sleepwell brand of mattresses, in July announced that it will acquire a 35% stake in Furlenco for Rs 300 crore – marking the largest and first reported acquisition in the space. Furlenco is a rival brand to Rentomojo in the category. Other funded players, albeit comparatively smaller rivals, include Cityfurnish and Rentickle.
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