Rentomojo IPO Gets SEBI Approval: ₹150 Crore Fresh Issue Planned

Rentomojo IPO: Online furniture and home appliances rental platform Rentomojo has received approval from the Securities and Exchange Board of India (SEBI) for its proposed IPO, clearing the way for the company to launch its public issue.

Rentomojo had filed its draft papers with SEBI on 1 April 2026, and the market regulator issued its observations on 6 July 2026. The company can now move ahead with the IPO process.

The proposed IPO includes a fresh issue of shares worth up to ₹150 crore and an Offer for Sale (OFS) of up to 2.84 crore equity shares by existing shareholders.

The company may also raise to ₹30 crore through a pre-IPO placement. If this happens, the fresh issue size will be reduced by the amount raised in the pre-IPO round.

Who Will Sell Shares in Rentomojo IPO?

The IPO is largely an OFS, which means several existing shareholders will sell part of their holdings.

The selling shareholders include Accel India IV (Mauritius), Edelweiss Discovery Fund, ValueQuest S.C.A.L.E. Fund, Madison India Opportunities, Chiratae Ventures, GMO VenturePartners and promoter Geetansh Bamania.

Motilal Oswal Investment Advisors, Axis Capital and IIFL Capital Services are the book-running lead managers for the IPO.

How Will Rentomojo Use IPO Funds?

The ₹150 crore fresh issue component will bring new capital into the company. Rentomojo plans to use the money for:

• Repayment or prepayment of certain outstanding borrowings and accrued interest.

• Payment of lease rentals and licence fees for warehouses and experience stores.

• General corporate purposes.

As the OFS component involves existing shareholders selling their shares, the money raised through that part of the IPO will go to the selling shareholders and not to Rentomojo.

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What Does Rentomojo Do?

Founded by Geetansh Bamania in 2012, Rentomojo operates an online rental and subscription platform for furniture and home appliances.

Instead of buying furniture and appliances, customers can take products on subscription for a fixed period. The company operates through an omnichannel model that includes its online platform as well as physical experience stores.

According to the company's draft papers, Rentomojo had an estimated 42% to 47% share of India's organised furniture and home appliances rental market, excluding water purifiers, based on subscription revenue in FY25.

Rentomojo Has Over 2.27 Lakh Live Subscribers

As of 30 September 2025, Rentomojo had 227,511 live subscribers across 22 cities in India.

The company operated 21 warehouses covering around 4.44 lakh square feet and had a network of 67 experience stores.

Its platform had 728,773 live furniture and appliance products available on subscription.

Rentomojo also reported an occupancy rate of 83.91% in H1FY26, compared with 82.82% in FY25, 86.43% in FY24 and 91.07% in FY23.

Rentomojo Financial Performance

Rentomojo reported revenue from operations of ₹176.6 crore for the 6 months ended 30 September 2025. Profit after tax for the same period stood at ₹61.4 crore.

For FY25, the company reported revenue from operations of around ₹266 crore, while profit after tax stood at ₹43.1 crore.

The improvement in profit during the first half of FY26 will be one of the key financial trends investors may track when the company releases updated financial information ahead of the IPO.

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Conclusion: Legal Dispute Remains a Key Issue to Watch

The IPO process is also facing an ongoing legal dispute involving former co-founder and COO Ajay Nain.

Nain has approached the Bengaluru bench of the National Company Law Tribunal (NCLT), seeking to stop the company from proceeding with the IPO.

He has alleged that he was misled into selling his 9.41% stake in 2023 and has sought restoration of his shareholding.

According to the company's draft papers, Rentomojo has filed caveats to ensure that no order is passed without hearing its submissions. The matter is yet to be heard.