Rentomojo Files RHP for Rs 1,256 Crore IPO, Targeting a Rs 4,200 Crore Valuation
Bengaluru-based furniture and appliance rental platform Rentomojo has filed its Red Herring Prospectus, setting a price band of Rs 384-404 per share and aiming to raise around Rs 1,256 crore, valuing the company at roughly Rs 4,200 crore at the upper end. The IPO opens for subscription on September 9, closes on September 11, with anchor investors bidding a day earlier on September 8.
Here's how the offer is structured. The Rs 1,256 crore issue combines a fresh issue of just Rs 150 crore with a much larger offer-for-sale of around 2.73 crore shares worth Rs 1,105.6 crore. In plain terms, less than 12% of the raise is actually new capital coming into the company, the rest is existing investors, including Accel India, Edelweiss, Chiratae Ventures, IDG Ventures India, ValueQuest and founder Geetansh Bamania, cashing out through the public listing.
The valuation jump is the real story here. Rentomojo's proposed IPO valuation is roughly five times its last private funding round, a striking step-up that puts the pricing itself under scrutiny as investors weigh whether they're paying for genuine growth or simply market enthusiasm around the listing.
The underlying business does show real progress. Revenue from operations rose 45.5% year-on-year to Rs 387 crore in FY26, and profit after tax jumped to Rs 104.2 crore. Worth noting though, this profit figure includes a Rs 36.6 crore deferred tax credit, an accounting benefit rather than operating cash, strip that out and underlying profit growth looks closer to 57% instead of the headline 142%, still solid, but a meaningful gap between the two numbers.
The company's market position is genuine. As of March 2026, Rentomojo had 2.54 lakh live subscribers across 29 cities, operating through 20 warehouses and 82 experience stores, with an estimated 42-47% share of India's organised online furniture and appliance rental market by subscription revenue in FY25, according to Redseer.
Where the fresh Rs 150 crore actually goes matters too, about Rs 70 crore will repay debt, and another Rs 42.5 crore covers lease rentals and licence fees for warehouses and experience stores, this is a balance-sheet-strengthening exercise as much as a growth-capital raise.
From a five-fold valuation jump to a mostly investor-exit-driven IPO structure, Rentomojo's public debut is shaping up to be a genuine test of how much premium India's rental economy story can command on the stock market.
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— Sandeep Raiza